The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
Answer:
I will do that buddy. I'll have fun
Your x and y intersection is: (-2,0).
Answer:
$3.13 after you add the tax.
Answer:
x = 1 ±2sqrt(5)
Step-by-step explanation:
2x^2-4x-9=29
Add 9 to each each side
2x^2-4x-9+9=29+9
2x^2-4x=38
Divide by 2
2/2x^2-4/2x=38/8
x^2 -2x =19
Complete the square
x^2 -2x + (-2/2)^2 = 19 +(-2/2)^2
x^2 -2x +1 = 19+1
(x-1)^1=2 = 20
Take the square root of each side
sqrt((x-1)^2) = ±sqrt(20)
x-1 = ±sqrt(20)
Add 1 to each side
x-1+1 = 1 ±sqrt(20)
x = 1 ±sqrt(20)
Simplifying the square root of 20
x = 1 ±sqrt(4)sqrt(5)
x = 1 ±2sqrt(5)
