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aleksandrvk [35]
3 years ago
8

Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual di

vidend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Business
1 answer:
Ludmilka [50]3 years ago
8 0

Answer:

$28.57

Explanation:

Current price = D1/(Required return-Growth rate)

D1 (Next dividend) = $2

Required return = 10% = 0.1

Growth rate = 3% = 0.03

Current price = $2/(0.1-0.03)

Current price = $2 / 0.07

Current price = $28.57143

Current price = $28.57

Hence, i will be willing to pay $28.57 for a share of Merck stock.

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Answer:

The correct answer is E.

Explanation:

Giving the following information:

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Safety and self- actualization are examples of emotional appeals.

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2 years ago
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Answer: Resource levelling

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While performing activities in project planning, the manager will try to schedule some tasks simultaneously. Resource leveling can be used to balance the workload of the main resources during the duration of of the project usually at the expense of either the time, cost or scope.

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Gamma Manufacturing employs some of the top professionals in its field, and because of their skills and experience, Gamma is highly efficient and outperforms its competitors. Gamma Manufacturing has a(n)<u> Competitive Advantage</u> over its competition.

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