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sveticcg [70]
3 years ago
9

CSU Co. just paid a dividend of $1.4 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent

per year indefinitely. If investors require an 12.6 percent return on Sky High Co. stock, the current price is $ _________ . Round it to two decimal places, and do not include the $ sign, e.g., 23.56.
Business
1 answer:
boyakko [2]3 years ago
8 0

Answer:

$16.93

Explanation:

Current stock price = dividend ( 1 + growth rate) / required return - growth rate

$1.4(1.04) / 0.126 - 0.04 = $16.93

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The process of conducting business on an international scale is a part of _____. globalization Communism mercantilism Socialism
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6 0
3 years ago
Paul pierce is busy working with other managers evaluating the products and businesses making up their company. paul is engaged
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Paul Pierce is occupied assessing the firms and items that make up their corporation alongside other management. Paul is analyzing his Portfolio Analysis.

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3 0
1 year ago
Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia
erastova [34]

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

                   = $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

                                        = $53,900

total assets = current assets + net fixed assets

                   = 53,900 + 391,500    

                   = 445,400

Then:

ROA = 53,900/445400

        = 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

                                 = 0.041763/0.958237

                                 = 4.36%

Therefore, The internal growth rate is 4.36%

7 0
3 years ago
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