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
pav-90 [236]
3 years ago
8

A share of common stock just paid a dividend (D0) of $1.50. If the expected long-run growth rate for this stock is 5%, and if in

vestors' required rate of return is 11.5%, what is the current stock price?
Business
1 answer:
skelet666 [1.2K]3 years ago
8 0

Answer:

Current stock price = $24.23

Explanation:

Stock price under Discounted Model:

P0 = D1 \div(Ke - g)

P0 = Current Market price of the share

g = Growth rate = 5.0%

Ke = Cost of equity = 11.5% p.a

D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575

P0 = $1.575 / (11.50% - 5.0%)

Current stock price = $24.23

You might be interested in
If your superior tells you that she will offer you a raise provided you perform additional work beyond the requirements of your
KengaRu [80]

Answer:

reward power

Explanation:

Reward power -

It refers to as the method of using rewards , so that the employee follows a particular instructions , is referred to as reward power .

The reward acts as a bait so that the employee can follow any order of the senior .

As from the given scenario of the question ,

The person works some extra hours in order to get a good increment .

Hence , from the given scenario of the question ,

The correct answer is reward power .

3 0
3 years ago
The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a year by the average person fall
aleksandr82 [10.1K]

Answer:

the income elasticity of bread is 20/39 and bread is an inferior good

7 0
2 years ago
TL Company has expected earnings of $75 in one year if it does well and $25 if it does poorly. The firm has outstanding debt of
Juliette [100K]

Answer:$27.78

Explanation:

Expected value of debt after one year = (40* .60)+(15*.40)

= 24 + 6

=$ 30

Current value of debt = Value at 1year / (1+r)^n

= 30/ (1+.08)^1

= 30 / 1.08

=$ 27.78

3 0
3 years ago
The major brand strategy decisions a firm has to make in building a strong brand begins with brand​ ________ and is followed by
maw [93]
The answer that best fits the blanks above are POSITIONING and NAME SELECTION, respectively. So one of the strategies in developing a strong brand is to start with brand positioning then followed by brand name selection. Brand positioning is also part of marketing and this allows the brand to be occupied in the minds of the customers. On the other hand, brand name selection follows a certain criteria that should be met whether it is interesting, and attracts attention.
3 0
3 years ago
if an average person earns $100.00, and has 25% taken out for taxes, how much will they pay in taxes?
NNADVOKAT [17]
25% of 100 is $25 hopefully thats what you were asking for
3 0
3 years ago
Other questions:
  • You've collected the following information about Molino, Inc.: Sales $ 215,000 Net income $ 17,300 Dividends $ 9,400 Total debt
    10·1 answer
  • XYZ Company purchased a new piece of equipment on January 1, 2022. The following information relates to the equipment purchased:
    5·1 answer
  • MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
    5·1 answer
  • What do you feel is the key to understanding debt
    14·1 answer
  • A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next
    12·1 answer
  • On January 1, Franz Co. accepted a 30-day, 6% note in the amount of $5,000 from Bria Co., a customer. On January 31, the due dat
    10·1 answer
  • Which of the following survey response methods is the most difficult for researchers to code for evaluation:
    13·1 answer
  • Mary Delany, owner of Delany Salsas, is curious to know whether the new packaging for her line of salsas is being noticed by sup
    7·1 answer
  • From your personal experience, what makes you decide whether or not to follow a specific influencer? If you don't use social med
    6·1 answer
  • The particular market segment your company is trying to sell your products or services to is your _________.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!