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Serjik [45]
3 years ago
9

A stock just paid a dividend of $4.01 and is expected to maintain a constant dividend growth rate of 4.7 percent indefinitely. I

f the current stock price is $66, what is the required return on the stock?
Business
1 answer:
svlad2 [7]3 years ago
4 0

Answer:

11.06%

Explanation:

According to the given situation, the computation of the required return on the stock is shown below:-

Required rate of return = Current Dividend × (1 + growth) ÷ Current Price + Growth

= $4.01 × (1 + 4.7%) ÷ 66 + 4.7%

= 11.06%

Therefore for computing the required rate of return we simply applied the above formula.

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Answer: True.

Explanation:

Personalized services are services that are flexible in delivery and can change with individual preferences.

Smaller businesses find it easier to render customised services to their customers, because their customers are fewer and they are eager to get more, which makes them to put in extra effort, in satisfying each customer.

Bigger businesses have a larger customers population and has a difficulty most times in totally satisfying their every needs.

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There is a new shoe company called "Tim's Shoes" that sells via online including an app. Just put in your size, see the selectio
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3 years ago
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FrozenT [24]

Explanation:

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= $17,000

So, there is no enough residual value left for $24,000 equity loan

2. By seeing the credit rating, income of a person, the lender could is willing to offer them additional amount i.e $7,000 that is come from subtracting the $17,000 from the $24,000 equity loan amount

5 0
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