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Sergeu [11.5K]
3 years ago
8

BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea

r, indefinitely. If the required rate of return by shares holders is 13%, then, according to the Gordon Model, what should the price of the stock be today
Business
1 answer:
siniylev [52]3 years ago
4 0

Answer:

$70.83

Explanation:

The Gordon Growth model (or the dividend discount model) provides a simple formula for calculating the intrinsic price of stocks:

price of stocks = dividend / (required rate of return - growth rate)

price of stocks = $4.25 / (13% - 7%) = $4.25 / 6% = $70.83

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Explanation:

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Which of the following statements explain(s) how the accounting equation applies to business?( check all the apply)
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The statements that explain how the accounting equation applies to business are:

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The accounting equation is given as:

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It also shows how assets, liabilities and equity are related and therefore applies to all the monetary transactions in the business as it shows how the cash is affected when it is spent or received.

Find out more on the accounting equation at brainly.com/question/24401217

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5 0
1 year ago
To raise $5 million, southeastern corporation decides to issue bonds. if southeastern does not register the bonds with the sec a
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Nadusha1986 [10]
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2 years ago
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Snezhnost [94]

Answer:

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