Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using
1 answer:
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Answer:
P5 = 10.41
Explanation:
To calculate the stock value with dividends for the fifth year the following formula would be used:
- Where:
The first Dividend Paid.
- G = Growth Rate.
- R = Required Return.
- Given Data:
$1.15
Growth Rate = 12.3%
R = 0.75%
P5 = ?
- Substituting the values in the formula