1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
eduard
4 years ago
12

You are valuing a common stock that just paid a dividend of $1.25 per share. You are expecting the stock to grow at the rate of

4% annually, and the stock to give you a return of 9%. What should be the price of the stock
Business
1 answer:
Agata [3.3K]4 years ago
4 0

Answer:

Price of stock- $26

Explanation:

<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>

Where a stock is expected  to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:

Price = D(1+g)/(ke-g)

D -dividend payable now,

Ke-required rate of return,

g - growth rate in dividend

So we can work out the price as follows:

Price = 1.25( 1+0.04)/(0.09-0.04)

      = $26

Price =$26

You might be interested in
Currently in​ Economica, the frictional rate of unemployment is 2.0​%, the structural rate of unemployment is 2.0​%, and the cyc
ollegr [7]

Answer:

7,5%

Explanation:

natural rate of unemployment is generally comprised of 3 unemployment types: structural rate of unemployment, cyclical rate of unemployment and frictional unemployment. This state exists even in a healthy environment commercially viable as workers will always seek for new jobs. At the time they leave to seek for new jobs, that period relates to natural rate of unemployment of the country or state.

so we add, frictional rate plus structural rate plus cyclical rate to get the figure for natural rate of unemployment.

6 0
3 years ago
Which of the following terms refers to a goal-oriented process that is directed toward ensuring that organizational processes ar
Feliz [49]

Answer:

Performance management

Explanation:

Performance management is a corporate management tool that aids managers to monitor and measure employees' work. Performance management's goal is to create an enabling environment where people can perform their to the best of their abilities to produce quality result.

Performance management is the activities and processes that focus mainly on areas to maintain and improve employee performance in line with an organisation's objectives.

8 0
4 years ago
Read 2 more answers
An attendant at a car wash is paid according to the number of cars that pass through. Suppose the probabilities are 1/12, 1/12,
Paladinen [302]

Answer: The attendant’s expected earn- ings for the period between 4:00 P.M and 5:00 P.M is <u>$12,67.</u>

Explanation: <u>The discrete random variable X</u> represent attendant’s earnings.

The expected value of the discrete random variable X is

<h2>= E (x) = ∑× f(x)</h2><h2>= 7 × 1/12 + 9 × 1/12 + 11 × 1/4 + 13 × 1/4 + 15 × 1/6 + 17 × 1/6 = <u>12,67.</u></h2><h2><u /></h2>
5 0
3 years ago
This question has already been solved
Alika [10]

Answer:

whats the answer hurry up

Explanation:

3 0
4 years ago
Read 2 more answers
The price of a stock fluctuates between $43 and $60. If the time frame referenced encompasses the primary trend, the $43 price m
Volgvan

Answer: support level

Explanation:

The support level and the resistance levels are used by analysts for the identification of price points on a chart where a pause or reversal of the prevailing trend is being favored by the probability.

The support level occurs in a scenario whereby there'll a pause of a downtrend because of the concentration of demand. Therefore, in this case, the $43 price may be considered the support level.

7 0
3 years ago
Other questions:
  • Polly Smith, a supervisor at Kroger's, was recently evaluated by her subordinates. Their responses indicated that Polly uses The
    7·1 answer
  • Select the correct answer. What does brand awareness of a product mean? A. the likelihood of a customer recognizing a brand amon
    13·1 answer
  • ______________ specifies sales revenues and selling distribution and marketing costs.
    15·1 answer
  • Many cities in southeast Michigan are struggling with financial problems due to current economic conditions. At the same time, s
    5·1 answer
  • In the circular flow model, who supplies factors of production in exchange for income?
    14·1 answer
  • California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insuran
    11·1 answer
  • Gleam Clean cleans and waxes floors for commercial customers. The company is presently operating at less than capacity with equi
    13·1 answer
  • Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock​ outstanding, which were issued at $ 15 per share. Drewson
    7·1 answer
  • After a product recall triggered by salmonella contamination and repeated violation citations by the health department, Mc Burge
    13·1 answer
  • Review the transactions and determine the accounts, the account types (use assets, liabilities, equity, dividends, revenue, and
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!