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seropon [69]
3 years ago
13

g last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over th

e next four years, respectively. After that the dividend will be a constant $2.50 per share per year. What is the market price of this stock if the market rate of return is 15%?
Business
1 answer:
Effectus [21]3 years ago
5 0

Answer:

The market price of the stock today is $26.57

Explanation:

The market price of the stock can be calculated based on the DDM approach. The expected dividends will be discounted back to present value along with the terminal value where dividend growth becomes zero.

The price of the stock is,

P0 = 3 / (1+0.15)  +  5 / (1+0.15)^2  +  7.5 / (1+0.15)^3  +  10 / (1+0.15)^4  + [(2.5/0.15) / (1+0.15)^4]

P0 = $26.567  rounded off to $26.57

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2 years ago
Charlotte paid $4 for a movie download. The monetary amount is the download's _____ .
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4 years ago
Read 2 more answers
Which choices will help you cut back on expenses so that you can spend more money on promotions or advertising? check all that a
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The complete question is:

Which choices will help you cut back on expenses so that you can spend more money on promotions or advertising check all that apply 1. Move to a higher-reng building 2. Use less-expensive ingredients 3. Look for discounted or used machines 4. Hire a young employee at minimum wage 5. Hire a manager to help the business grow

5 0
1 year ago
Justin, age 66, paid $6,000 in qualified medical expenses in 2019 and took an $8,000 Archer MSA distribution during the year. Wh
Triss [41]

Answer:

No tax penalty will apply with respect to the excess distribution

Explanation:

Data provided in the question:

Age of Justin = 66 years

Qualified medical expenses in 2019 = $6,000

Archer MSA distribution taken during the year = $8,000

Now,

No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.

Here,

The age of Justin is 66 years i.e over 65 years.

hence,

No tax penalty will apply with respect to the excess distribution

4 0
3 years ago
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tatiyna

Answer:

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4 years ago
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