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Marizza181 [45]
3 years ago
7

is expected to pay a dividend of $2.60 and $2.24 over the next two years, respectively. After that, the company is expected to i

ncrease its annual dividend at 2.8 percent. What is the stock price today if the required return is 10.2 percent?
Business
2 answers:
Natalka [10]3 years ago
7 0

Answer: The stock prices for today are $35.14 and $30.27

Explanation:

Stock Price(P) = D1/{r-g}

D1 = $2.6

D2 = $2.24

r = 10.2%

g = 2.8%

P1 = 2.6/(0.102 - 0.028)

P1 = 2.6/0.074

P1 = $35.14

P2 = 2.24/(0.102 - 0.028)

P2 = 2.24/0.074

P2 = $30.27

Romashka-Z-Leto [24]3 years ago
5 0

Answer:

$29.13

Explanation:

first we need to calculate the growing perpetuity value for year 2:

= dividend / (discount rte - growth rate) = $2.24 / (10.2% - 2.8%) = $2.24 / 7.4% = $30.27

Now we have to calculate the present value of the dividends for the next two years and the growing perpetuity:

present value = ($2.60 / 1.102) + ($2.24 / 1.102²) + ($30.27 / 1.102²) = $2.36 + $1.84 + $24.93 = $29.13

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mars1129 [50]

Answer:

true

Explanation:

beacuse the faces of industrtions

6 0
3 years ago
Read 2 more answers
Which report and metric should you analyze to see how often your client's ads are showing above search results in comparison wit
Leona [35]

Answer:

The correct answer is <em>Top of page rate metric from the Auction insights report.</em>

Explanation:

The auction statistics report allows you to compare the performance of your campaign with others that participate in the same auctions as yours.

Why is this important? Well, it can help you make strategic decisions by comparing yourself with the rest, seeing their offers and budgets, as it shows you in which areas they are performing well and which ones could be better.

This statistics report is available for campaigns in the search network that meet a minimum activity limit.

The report offers 6 different statistics: percentage of impressions, average position, percentage of overlap, percentage of top position, percentage of the top of the page and percentage of higher ranking.

6 0
3 years ago
Read the scenario:You are writing a research report on financial derivatives.
nikdorinn [45]

Answer:

A. Search electronic databases for relevant material.

C. Go to the library, and look for books on the subject.

Explanation:

In a research study, a secondary source is a term that describes a form of source which is not the original source to the interpreted data. In other words, it involves already prepared data which can easily be found in places like academic books and journals

Hence, in this case, when performing secondary-source research, the following should be done amongst others:

1. Search electronic databases for relevant material.

2. Go to the library, and look for books on the subject.

This is because the aforementioned involves a place to get a secondary source and it will save time and effort.

On the other hand, Holding focus groups and conducting interviews involves primary source research

5 0
3 years ago
The​ long-run aggregate supply curve will not shift if there is a change in A. amount of capital. B. the price level. C. technol
ValentinkaMS [17]

Answer:

The​ long-run aggregate supply curve will not shift if there is a change in

  • B. the price level.

A change in the price level only results in a movement along the long-run aggregate supply curve, it doesn't cause a shift. Only when the quantity of factors of production changes, will the LRAS curve shift.

All of the following will shift the​ short-run aggregate supply and the​ long-run aggregate supply except for

  • C. a temporary change in input prices.

Basically the same logic as the previous answer, a change in price level doesn' shift the LRAS curve.

3 0
4 years ago
You own a stock that has an expected return of 15.72 percent and a beta of 1.33. The U.S. Treasury bill is yielding 3.82 percent
ryzh [129]

Answer: expected rate of return on the market=12.77%

Explanation:

Given that

Expected return =15.72 percent

beta =1.33

Risk free rate=3.82 percent

According to the CAPM FORMULA,

Expected return = Risk free rate+ Beta( expected rate of return on market - Risk free rate

15.72% = 3.82 % + 1.33 ( Em - 3.82%)

0.1572=0.0382+ 1.33 Em - 0.050806

0.1572- 0.0382+ 0.050806 = 1.33 Em

0.169806=1.33Em

Em = 0.169806/1.33

=0.12767 x 100

12.767 ≈12.77%

expected rate of return on the market=12.77%

4 0
3 years ago
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