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goblinko [34]
3 years ago
5

The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4

.5 percent forever. If the stock currently sells for $39.85 per share, what is the required return
Business
1 answer:
Juliette [100K]3 years ago
6 0

Answer:

Cost of equity   = 10.7%

Explanation:

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

<em>The model can me modified to determined the cost of equity as follows:</em>

Cost of equity = D/P  + g

d- dividend payable next period, p- price of stock ,, - g- growth rate

D- 4.5%, p- $2.48 , g -4.5%

Cost of equity = (2.48 /39.85) + 0.045

                      = 10.7%

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How does a traditional adversarial relationship with suppliers change when a firm decides to move to a few suppliers
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Answer and Explanation:

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3 years ago
Alexis want to buy a house in 5 years. She wants to save $75,000 over the next five years for a down payment. If she can earn an
kotegsom [21]

Answer:

the monthly payment is $994.38

Explanation:

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Given that,  

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4 years ago
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artcher [175]

Answer:

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