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Strike441 [17]
3 years ago
8

​(Related to Checkpoint​ 10.1) ​(Common stock valuation​) Header​ Motor, Inc., paid a ​$2.71 dividend last year. At a constant g

rowth rate of 5 ​percent, what is the value of the common stock if the investors require a 15 percent rate of​ return?
Business
1 answer:
zhuklara [117]3 years ago
8 0

Answer:

The value of the common stock today is $28.455 per share.

Explanation:

For a stock that is paying constant growth rate in dividends, we use the constant growth model of the DDM to calculate the value of stock today. The formula for price using the constant growth model is,

Price = D1 / r - g

Where,

  • D1 is the dividend expected in the next period or D0 * (1+g)
  • r is the cost of equity or required rate of return
  • g is the growth rate in dividends

Price = 2.71 * ( 1 + 0.05 )  / (0.15 - 0.05)

Price = $28.455

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b. competitive advantage.

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2 years ago
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Answer:

The option which is not a task of the bankruptcy trustee is;

Represent the debtor when meeting with creditors

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Im pretty sure!

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2 years ago
The use of anthropological techniques to study businesses and what some people cal organizational culture in order to assist the
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brainly.com/question/14263920

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