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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

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4 years ago
You have used the best data available and framed the best and most focused questions you could. What must you keep in mind about
Nostrana [21]

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Like  -300,200 and 100 should be zero.

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5 0
3 years ago
A salesperson who has anticipated customer doubt about a product and formulated proper responses is ready to:____.
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After a salesperson has been able to anticipate customer doubt about a product and then formulated a response to it, the salesperson is then ready to Answer objections.

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They therefore need to anticipate the objection and the doubt that the customer has and then they can come up with a solution to the customer's problem.

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2 years ago
Given this set of daily service operations, and assuming a processing order of A-B-C-D-E: Service Operation Number of Daily Reps
leonid [27]

Answer:

A.Given this set of daily service operations, and assuming a processing order of A-B-C-D-E: Service Operation Number of Daily Reps A 32 B 24 C 32 D 28 E 12 a. Give one reason that each arrangement might be preferred over the other. b. Determine the number of repetitions for

B.

Step-1: Calculate the units to be processed in one cycle by dividing the daily requirement with number of cycles

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C.

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Explanation: tables in attached file are for questions B and C respectively

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4 years ago
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