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ch4aika [34]
3 years ago
14

Suppose NoGro, Inc. has just issued a dividend of $2.90 per share. Subsequent dividends will remain at $2.90 indefinitely. Retur

ns on the stock of firms like NoGro are currently running 15%. What is the value of one share of stock?
Business
1 answer:
ira [324]3 years ago
5 0

Answer:

Value of one share will be $19.33

Explanation:

We have given dividend every year = $2.90

Required rate of return = 15 %

We have to find the value of one share

Value of one share will be equal to ratio of dividend per year to the required rate of return

So value of one share =\frac{2.90}{0.15}=19.13

So value of one share will be $19.33

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ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80%
Rama09 [41]

Answer:

$35,000

Explanation:

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3 0
3 years ago
Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?
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3 0
3 years ago
Jahwana works for a large corporation with a 401(k) retirement plan. The company matches dollar for dollar the first 5% of the e
Gre4nikov [31]

Answer:

$8,000

Explanation:

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7 0
3 years ago
Read 2 more answers
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