Complete Question:
BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
a) Data and Calculations:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.
Answer:
real interest rate = -3.08%
Explanation:
real interest rate = nominal rate - inflation rate
- nominal interest rate = [($562/$509) - 1] x 100 = 10.41%
- inflation rate = [(143/126) - 1] x 100 = 13.49%
real interest rate = 10.41% - 13.49% = -3.08%
since the real interest rate is negative, the investor actually lost money in real dollars. This means that the amount of goods that the investor could purchase before making the investment is higher than the amount of goods he/she will be able to buy after the investment.
The first world welfare superpower was Japan.
Answer:
It emphasize on applicant's continued interest because when you create a follow up letter after rejection, candidate should be confident and persistent . He should show confidence in meeting the job requirements.
Explanation:
