Assuming the required return is 12 percent, the stock price today is $40.61.
Given:
Dividend=$2.58 per share
Increase in Dividend=20% and 15%
Number of year=2 years
Increase in Annual Dividend=3.6%
Required return=12%
P2=Stock price today
Now let calculate the stock price today
P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2
P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2
P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]
P2=$2.7643+$2.838329+($43.91155/1.2544)
P2=$2.7643+$2.838329+$35.0060
P2=$40.61
Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.
Learn more here:
brainly.com/question/24314972
<span>In a channel arrangement, two or more companies at one level join together to follow a new marketing opportunity.
When a company has a channel arraignment it allows for new marketing strategies and tactics. In this situation, companies are going in together at the same level with the same power to accomplish new opportunities and goals together. </span>
Answer:Cadence calls often occur at a set time each week or month
Explanation:
It's a follow up call or activities on customers who have shown interest in the firm products either on advertised platforms or other channels.
Answer:
31.12
Explanation:
Given that,
Growing at a constant rate = 6.5%
Firm’s last dividend, R = 3.36
Required rate of return = 18%
Expected dividend next year = 3.36 × (1 + 6.5%)
= 3.5784
Market value of stock:
= Expected dividend next year ÷ ( required return - growth rate)
= 3.5784 ÷ (0.18-0.065)
= 31.11652
= 31.12
Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.
