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Mrac [35]
3 years ago
7

River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend grow

th rate is 0.75 percent. What is the expected value of this stock five years from now
Business
1 answer:
Tasya [4]3 years ago
6 0

Answer:

10.34

Explanation:

This question refers to Dividend Growth Rate with respect to Stock valuation

The model estimates the dividends over a defined period based on an assumed growth rate to determine the future value of the stock.

The formular to calculating the expected value is as follows

\frac{Dividend Amount(1+Rate)^{Years}  }{Expected Return - Rate}

Please note:

Expected return and Rate are expressed in percentage i.e divided by 100.

Fitting into the formular:

\frac{1.15(1+0.0075)^{5} }{0.123 - 0.0075}

The resulting answer = 10.34

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For a defendant to successfully prove he or she acted under duress, the following must be satisfied:

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