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nignag [31]
3 years ago
13

The next dividend payment by Savitz, Inc., will be $1.68 per share. The dividends are anticipated to maintain a growth rate of 6

percent forever. If the stock currently sells for $32 per share, what is the required return
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

The answer is 11.25%

Explanation:

Solution

Given that:

The next step to take is to calculate the required rate of return which is shown below:

The required rate = D₁/P₀₀ + g

Thus,

$1.68/$32 + 0.06%

=0.0525 + 0.06

=0.1125 or 11.25%

Therefore, the required rate of return is 11.25%

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Answer:

i dont get it, is there a question?

Explanation:

6 0
3 years ago
What do you suppose Confucius and Aristotle, teachers of virtue ethics, would
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Answer and Explanation:

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3 years ago
Consider the monopolistically competitive market structure, which has some features of a competitive market and some features of
Nikolay [14]

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Both competitive and monopolistically competitive markets are easy to enter and exit from but only competitive markets have their pruice equal to their marginal cost.

The goods in a monopolistically competitive market is slightly variated while those in competive markets are homogenous.

Find out more on monopolistically competitive markets at brainly.com/question/25717627

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5 0
2 years ago
When conducting a root-cause analysis, evaluators ask why each thing happened or did not happen.
Vinvika [58]

Answer:

True

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Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale
nasty-shy [4]

Based on the fact that HALE sold the shares to an Investment banker, this cannot be said to be a secondary transaction. The statement is <u>False</u>.

<h3>What is a secondary market share transaction?</h3>

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When a company sells directly to an investment bank which then sells it to others, this is a primary market transaction.

Find out more on primary market transactions at brainly.com/question/8017256.

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4 0
2 years ago
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