1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
serg [7]
3 years ago
6

Stoneheart Group is expected to pay a dividend of $3.17 next year. The company's dividend growth rate is expected to be 3.9 perc

ent indefinitely and investors require a return of 11.7 percent on the company's stock. What is the stock price?
Business
1 answer:
AleksAgata [21]3 years ago
8 0

Answer:

The price of the stock= 40.64

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 3.17

g- growth rate - 3.9%

r- required rate of return - 11.7%

P = 3.17/(0.117- 0.039)=40.641

The price of the stock= 40.64

You might be interested in
Grace called a team meeting at her company to go over the results of her marketing research. Before walking through the results,
bearhunter [10]

Answer:

sorry,I don't know the correct answer

5 0
3 years ago
Read 2 more answers
Which of the following is an example of a criminal offense?
Aleks04 [339]
Check forging is it
7 0
3 years ago
Like the capital asset pricing model, the bond yield plus risk premium (BYPRP) approach is useful for __________.
jekas [21]

Answer:

nanning is the first one for

5 0
3 years ago
When Natasha took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was stil
rosijanka [135]

Answer:

The correct word, that fills the gap is: New buy.

Explanation:

  • Direct repurchase: it is a shopping situation in which the purchasing department repeats orders routinely. The buyer chooses among the suppliers that appear on an "approved list". "Excluded suppliers" will try to take advantage of inefficiencies or dissatisfactions with respect to Current suppliers.
  • Modified repurchase: it is a situation in which the buyer wants to modify the product specifications, prices, delivery requirements or other conditions; In general, it involves additional participants in the decision by both parties. New task: it is a purchase situation in which a buyer acquires a product or service for the first time (building, security system).

New homework purchases have several stages: awareness, interest, evaluation, trial and adoption.

  • The industrial buyer: It makes the least number of decisions in the situation of direct repurchase and the largest, in the situation of new task. This is the biggest opportunity and the biggest challenge for the marketing people, which tries to reach as many key influencers as possible and provide useful information and help. Due to the complexity of the sales work, many companies use a missionary sales force composed of their best sellers.
6 0
2 years ago
Dewyco has preferred stock trading at per share. The next preferred dividend of is due in one year. What is​ Dewyco's cost of ca
Molodets [167]

Answer:

6%

Explanation:

some information is missing:

market price of preferred stock = $50

preferred stock dividend = $3

preferred stocks' cost of capital = preferred stock dividend / market price of preferred stock = $3 / $50 = 0.06 = 6%

Preferred stocks' cost of capital is not affected by any corporate tax rates, since preferred dividends are considered paid in capital and cannot be deducted as interests in the income statement.  

3 0
3 years ago
Other questions:
  • E-waste is particularly difficult to address because of: the complexity of the modern value chain. the complexity of the modern
    8·1 answer
  • Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and
    15·1 answer
  • Brief Exercise 10-2 Your answer is partially correct. Try again. For the quarter ended March 31, 2020, Croix Company accumulates
    15·1 answer
  • Oriole Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 390 $6
    11·1 answer
  • When Russell turned 21-years-old, his father gave him a management position at the family's hardware store. He explained to Russ
    10·1 answer
  • Yum! Brands is the result of a spin-off by PepsiCo, where it sold its fast-food chains KFC, Taco Bell, and Pizza Hut. Do you con
    12·1 answer
  • Which are the four functions motor freight terminals usually serve?
    14·1 answer
  • A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is
    7·1 answer
  • What is a determinant of demand that would cause demand to increase?
    14·1 answer
  • How many hours a week should a student plan to study for a three-credit course in a 15-week session?.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!