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kipiarov [429]
3 years ago
6

Burnett Corp. pays a constant $8.15 dividend on its stock. The company will maintain this dividend for the next 12 years and wil

l then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

$52.91

Explanation:

With regards to the above, we will apply the dividend discount model to come up with the price for share.

Under the dividend discount model, the price for share represents the present value of all its future dividend discounted at the required rate of return.

Since the share has 12 annual equal dividend payments of 8.15 each year, while the required rate is 11%, we can apply the below annuity to arrive at the share price.

(8.15/0.11) × [ 1- 1.11^(-12) ] = $52.91

Therefore, the current share price is $52.91

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it is a cape Coral's bat

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Research indicates that when it comes to the diversification-performance relationship, the highest economic performance occurs w
gulaghasi [49]

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Related diversification strategy.

Explanation:

Related diversification is a business strategy in which a business enter a new industry which has some similarities with a company's existing business industry. The highest economic benefit will be achieved by a business if it enters into related diversification strategy.

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3 years ago
A portfolio is consisted of two stocks:$1,000 in stock X and $3,500 in stock Y. The expected return on stock X is 12%, and 6% fo
oksano4ka [1.4K]

Answer:

Portfolio return = 7.3%

Explanation:

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Weighted average expected rate of return=

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6 0
3 years ago
What kind of PPE should be worn operating a pit​
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A mask, gloves, gown, face shield.

Explanation:

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5 0
3 years ago
Jones Corp. reported current assets of $191,000 and current liabilities of $136,000 on its most recent balance sheet. The curren
stiks02 [169]

Answer:

acid-test ratio 1,4044

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