1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lesya692 [45]
3 years ago
9

Braxton's Cleaning Company stock is selling for $33.25 per share based on a required return of 11.7 percent. What is the the nex

t annual dividend if the growth rate in dividends is expected to be 4.5 percent indefinitely?
Business
1 answer:
4vir4ik [10]3 years ago
6 0

Answer:

So, the next annual dividend will be $2.394

Explanation:

The constant growth model of DDM is used to calculate the price of a stock today whose dividend growth rate is expected to be constant forever. The price of such a stock is calculated using the formula for price under the constant growth model of DDM,

P0 = D1 / (r - g)

Where,

  • P0 is price today
  • D1 is the next annual dividend that will be paid by the stock
  • r is the required rate of return
  • g is the growth rate in dividends

To calculate the next annual dividend, we will input the available values for P0, r and g in the formula,

33.25 = D1 / (0.117 - 0.045)

33.25 * (0.072) = D1

2.394 = D1

So, the next annual dividend will be $2.394

You might be interested in
A satellite radio company is the sole supplier of a brand-new service providing commercial-free music that competes with existin
trasher [3.6K]
The answer to your question is 1. high price
7 0
3 years ago
Wendy is calculating her tax deductions. She finds that she can deduct $5,522 from medical expenses, $7,240 from
vladimir1956 [14]

Answer:

d. $14,888

Explanation:

Wendy's total deductions will be the sum of $5,522, $7,240, and $2,126.

Total deductions will be $5,522 + $7,240 + $2,126 =$14,888

4 0
3 years ago
Read 2 more answers
When airbnb customers in malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this ma
Natali [406]
When airbnb customers in malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.   The equilibrium price refers to the market price when the quantity of goods and services supplied is equal to the demand of the goods and services. If equilibrium price rises, efficiency decreases due to the market not being equal with the supply and demand of items.
8 0
3 years ago
What is the first step in creating a cash flow statement?
Nimfa-mama [501]
Thinking summarizes the operating, financing and investing activities of an entity
3 0
3 years ago
Read 2 more answers
What is an Australian ballot?
lbvjy [14]

The secret ballot is a voting method in which a voter's choices in an election or a referendum are anonymous, forestalling attempts to influence the voter by intimidation, blackmailing, and potential vote buying. The system is one means of achieving the goal of political privacy.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Farmer and Taylor formed a partnership with capital contributions of $280,000 and $330,000, respectively. Their partnership agre
    9·1 answer
  • When will the wages per hour go up to 11.00 dollars per hour in 2017?
    8·1 answer
  • List several factors that help identify inappropriate, unsound, and possibly dangerous commercial weight loss programs
    10·1 answer
  • It costs Orkid Company $17 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capa
    5·1 answer
  • Priya has held several different positions within the same company. She has been an Assistant to the Marketing Manager, a Sales
    14·2 answers
  • Suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly. you will pay off the loan over 48 mo
    13·1 answer
  • Jamila conducts a job analysis focused on collecting very detailed information about the knowledge, skills, abilities, and other
    10·1 answer
  • Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $
    8·1 answer
  • Jenny would like to know whether she has budgeted enough money per month for groceries while she is in college. She takes a repr
    14·1 answer
  • ASC Topic 235, Notes to Financial Statements
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!