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Dafna11 [192]
3 years ago
11

Spacefood Products will pay a dividend of $ 2.25 $2.25 per share this year. It is expected that this dividend will grow by 3 3​%

per year each year in the future. What will be the current value of a single share of​ Spacefood's stock if the​ firm's equity cost of capital is 10 10​%?
Business
1 answer:
gavmur [86]3 years ago
7 0

Answer:

$32.14 per share

Explanation:

The computation of the current value of the single share is shown below:

= Current year dividend ÷ (Required rate of return - growth rate)

where,

Current year dividend is $2.25 per share

Required rate of return is 10%

And, the growth rate is 3%

So by placing these items, the current value is

= $2.25 ÷ (10% - 3%)

= $32.14 per share

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Answer:

Explanation:

Long-term Investment cost = $25

Long-term Investment sales value = $54

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Land sales value = $28

Loss from sale of Land = $(28-53) = -$25

Cash Dividend paid = $22

Total change in Assets = $(29-25) = $4

Total change in Equity = -$22

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Psychological barrier

Explanation:

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Read 2 more answers
ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income D
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Answer: See explanation

Explanation:

The retained earnings will be calculated as:

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Year 1:

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Year 2:

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Year 3:

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Year 4:

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Year 5:

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Explanation:

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