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kodGreya [7K]
3 years ago
13

8. PLC pays an annual dividend of $6.00. The company is expected to continue paying this dividend with no future growth in divid

ends. Investors require 11% rate of return on this investment. What is the current stock value of PLC?
Business
1 answer:
torisob [31]3 years ago
3 0

Answer:

The current stock value of PLC: $54.55.

Explanation:

Please find the below for detailed explanations and calculations:

PLC's stock value should equal to the present value of its future dividends discounted at required rate of return which is given in the question at 11%.

The constant stream of PLC's annual dividend as described in the question forms a perpetuity of $6.00 dollar per year perpetually.

As explained above, by applying the formula for calculating the present value of the perpetuity, we have:

PLC's current stock value = 6/11% = $54.54.

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Answer;

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3 years ago
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worty [1.4K]

Answer:

E. $148,600

Explanation:

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3 years ago
What is the total annual dividend received from owning 75 shares of stock A, if Company A issues a $0.20 quarterly dividend to i
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The total annual dividend received is $60.

The computation of the total annual dividend is as follows:

Given that

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Learn more about the dividend here: brainly.com/question/13535979

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