1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rudiy27
3 years ago
13

ConsGrough, Inc. has increased its annual common dividend by 3% in each of the years that the company has existed. If you believ

e that the company can continue to do so indefinitely, then what price would you be will to pay for ConsGrough if the required rate of return is 6% and the dividend that it paid yesterday was $5?
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer: $171.67 would be the price of the security

Explanation: This problem relates to dividend growth model, which can be shown as follows :-

=\frac{D_{1}}{P_{0}}+\:G

where'

d1 = expected dividend

p = price

g = growth rate

therefore,

=\frac{\$5\left ( 1+3\% \right )}{P_{0}}+\:3\%

solving this we get

p_0=\$171.67

You might be interested in
Ricardo bought a new suit and he immediately doubted that he made the right decision. he is not sure he bought the right suit an
Tema [17]
He is experiencing buyer's remorse
6 0
3 years ago
Which of the following statements regarding the Foreign Corrupt Practices Act (FCPA) is NOT TRUE? Group of answer choices Bribes
Kazeer [188]

The statement that is not the about foreign corrupt practices act is In an unstable political environment, payments made to local officials to avoid harassment of employees are acceptable.

<h3>Foreign Corrupt practices</h3>

The Foreign Corrupt Practices Act was established on 1977 in United States . It is a United State federal law that prohibits U.S. citizens from offering payment for business or bribing foreign government officials to benefit their business interests and retain businesses.

Citizens should not offer any payment to foreign officials for their business.

Therefore, The statement that is not the about foreign corrupt practices act is In an unstable political environment, payments made to local officials to avoid harassment of employees are acceptable.

Learn more on Foreign corrupt practices act from the link below.

brainly.com/question/8211495

3 0
3 years ago
Which of the following methodologies might be most appropriate if you have a system project with: unclear requirements; very fam
Anna71 [15]

Answer:

The last option is wrong, the correct option to that question is: Extreme Programming.

And the correct answer is that option.

Explanation:

To begin with, the name of <em>"Extreme Programming"</em> refers to a specific methodology of development of software that mainly focuses in the improvement of software quality and the responsiveness to changing customers requirements. Moreover, this methodology best fits in the cases where the system project comes with unclear requirements and where there is a short time schedule due to the fact that as a type of agile software development it advocates frequent releases in short time cycles that are primarily focus on introducing checkpoints in where the requirements of the consumers who are unclear can be adopted.

5 0
4 years ago
Four years ago, Bling Diamond, Inc., paid a dividend of $1.73 per share. The firm paid a dividend of $2.36 per share yesterday.
Valentin [98]

Answer:

$2.90 approx

Explanation:

The computation of firm’s cash dividend be in seven years

First we need to find out the

Growth Rate = (Last Dividend ÷ Dividend 4 years ago)^(1 ÷ 4) - 1

= ($2.36 ÷ $1.73)^(1 ÷ 4) - 1

= $1.36^0.35 - 1

=  1.113624092  - 1

= 0.113624092

= 11.36%

Now we calculate for 5 years

Dividend in 5 years = $2.36 × 1.113624092

= $2.628

and Dividend in 7 Years = Dividend in 5 years × (1 + 5%)^2

= $2.628 × 1.05^2

= $2.628 × 1.1025

= $2.90 approx

3 0
4 years ago
10. Which of the following is NOT a trading instrument? *
bonufazy [111]

Answer:

b is the answer ur looking

Explanation:

you're welcome have a wonderful rest of your week God loves you and Merry Christmas

6 0
3 years ago
Other questions:
  • An industrial tool manufacturer relies on a particular distributor network. This distributor network has the largest online outl
    15·1 answer
  • Is marketing an art form in the digital age? Why or why not?
    13·1 answer
  • Which strategy for saving do you think would work best for you?
    5·2 answers
  • A home mortgage loan closed on July 1 for $765,000 at 5.5% interest amortized over 25 years at $4,697.77 per month. Using a 360-
    8·1 answer
  • According to the definitions in the asbestos standard, a professional who is qualified by education, training, and experience to
    13·1 answer
  • Kim's Bridal Shoppe has 12,200 shares of common stock outstanding at a price of $56 per share. It also has 315 shares of preferr
    9·1 answer
  • Is advertising a fixed variable?
    11·2 answers
  • Ian's team just had a research breakthrough. They'll need several thousands of dollars to complete the project. Brian has called
    5·1 answer
  • Outsourcing is the: Group of answer choices use of computers to obtain value-creating data from the Internet. selling of a value
    7·1 answer
  • A dispute is:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!