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Savatey [412]
3 years ago
7

Danny is considering a stock purchase. The stock pays constant annual dividends of ​$1.54 per share and is currently trading at

​$21.27. ​Danny's required rate of return for this stock is 14.1​%. Should he buy this​ stock?
Business
1 answer:
Ksenya-84 [330]3 years ago
7 0

Answer:

No he should not buy this stock.

Explanation:

The stock pays a constant dividend thus it means it is a zero growth stock. The formula to calculate the fair price of a zero dividend growth stock is as follows,

  • P = D / k
  • Where D represents dividend
  • k represents required rate of return
  • P = 1.54 / 0.141 = 10.92

The fair price of the stock according to the Dividend discount model is 10.92 while the stock is trading at 21.27 which means that the stock is overpriced. So, it should not be purchased.

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To give the audience more information or teach them about something ENTERTAIN. Keeps the audience's attention usually in an enjoyable way INFORM. Gets the audience to believe something or do what they are saying PERSUADE.

What is the purpose of this presentation to persuade?

In a persuasive speech, the goal is to change the attitudes, beliefs, values, or judgments of your audience.

If we look back at the idea of motive, in this speech the prosecuting attorney would try to convince the jury members that the defendant is guilty beyond reasonable doubt.

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6 0
2 years ago
Who here thinks that we should create a medium of this not unsimilar to yahoo answers, in which we could as general questions in
ANTONII [103]
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4 0
3 years ago
You work for a company that manufactures prescription eyeglasses and want to create a piece of content for your buyer persona. y
Svet_ta [14]

Answer: A checklist on how to determine if it's time to get a new pair of eyeglasses

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3 years ago
is year, Amy purchased a personal residence at a cost of $1,000,000. She borrowed $800,000 secured by the home to make the purch
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Answer:

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Explanation:

Compute at the amount of $750,000 the interest Amy could deduct as follows:

Since the interest on loan secured by home could be deduct on the first $750,000 borrowing amount. Hence,

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3 0
3 years ago
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vovangra [49]

Answer:

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