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Mandarinka [93]
3 years ago
9

Best Ever Toys just paid its annual dividend of $1.78 per share. The required return is 10.6 percent and the dividend growth rat

e is 1.23 percent. What is the expected value of this stock five years from now
Business
1 answer:
lianna [129]3 years ago
5 0

Answer: $20.44

Explanation:

From the question given, we are informed that Best Ever Toys just paid its annual dividend of $1.78 per share and that the required return is 10.6% and the dividend growth rate is 1.23%, then the expected value of this stock five years from now will be:

= [$1.78 × (1 + 1.23%)^6] / (10.6% - 1.23%)

= (1.78 × 1.0123^6)/(10.6% - 1.23%)

= 20.44

The expected value of the stock is $20.44

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neonofarm [45]

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3 years ago
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Answer:

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3 years ago
Why might long-term interest rates go down at the same time that the federal reserve pushes short-term rates up?
mart [117]
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3 0
3 years ago
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Alex73 [517]

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