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SSSSS [86.1K]
3 years ago
7

Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is

9% for both stocks. You require a rate of return of 10% on stock C and a return of 13% on stock D. The intrinsic value of stock C
Business
1 answer:
Stels [109]3 years ago
8 0

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

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Explanation:

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Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>

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According to the goldman sachs video case study on the factory of the future, which one of the following developments was not de
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Suppose the economy is initially at point A. Now suppose an increase in government purchases shifts the aggregate demand curve t
UkoKoshka [18]

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C. Firms and workers will negotiate higher nominal wages to restore lost purchasing power. This shifts the SRAS curve to the left until the gap is eliminated at D.

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3 years ago
The anterior lobe of the highlighted structure secretes all of the following except ___. a) follicle stimulating hormone b) adre
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