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ehidna [41]
3 years ago
11

Take Time Corporation will pay a dividend of $4.10 per share next year. The company pledges to increase its dividend by 6 percen

t per year, indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $
Business
1 answer:
makkiz [27]3 years ago
3 0

Answer:

So the current stock price will be $102.5

Explanation:

We have given that next year dividend D_1=$4.10

Growth rate = 6 % = 0.06

Required return Ke = 10% = 0.01

We have to find the company current stock price

We know that current stock price is given by

P_0=\frac{D_1}{Ke-g}=\frac{4.10}{0.1-0.06}=$102.5

So the current stock price will be $102.5

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nikitadnepr [17]

Answer:

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Explanation:

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Answer:

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Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

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To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

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3. Press compute

I hope my answer helps you

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