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gladu [14]
3 years ago
8

The Lo Company earned $2.60 per share and paid a dividend of $1.30 per share in the year just ended. Earnings and dividends per

share are expected to grow at a rate of 5 percent per year in the future. Determine the value of the stock if the required rate of return is 12 percent.
Business
1 answer:
Kitty [74]3 years ago
3 0

Answer:

Price of stock is $18.57

Explanation:

Dividend growth method measures the stock value by taking sum of present value of all future cash flows means present value of all future dividends.

Use following formula to calculate the price of stock

Price = Dividend / Rate of return - Growth rate

According to given data

Dividend = $1.30

Required rate of return = 12%

Growth rate = 5%

Price = $1.3 / ( 12% - 5% )

Price = $1.3 / 7%

Price = $18.57

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Pepsi [2]

Answer:

The technology is a support activity in a firm's value chain.

Explanation:

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3 years ago
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8 0
3 years ago
Read 2 more answers
By lowering production costs, _____ help domestic producers compete against foreign imports
Ann [662]

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<h3 /><h3>What are subsidies?</h3>

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This allows the local firms to then sell their goods at a lower price so that they can compete with cheaper imports.

Options for this question include:

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Find out more on subsidies at brainly.com/question/6945210.

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3 0
2 years ago
The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than fin
ryzh [129]

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3 years ago
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