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BigorU [14]
3 years ago
10

New Products pays no dividend at the present time. Starting in Year 3, the firm will pay a dividend of $.25 per share for two ye

ars. After that, the company plans on paying a constant $.75 a share annual dividend indefinitely. How much should you pay per share to purchase this stock today at a required return of 13.8 percent? Multiple Choice $3.78 $3.56 $4.37 $4.61 $4.98

Business
1 answer:
maksim [4K]3 years ago
8 0

Answer:

$3.56

Explanation:

Please see attachment .

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There are 8 kinds of sewing machine. Are all of them are used for constructing a garment? Why?
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How fast does q 500 Hz wave travel if its wavelength is 0.5m
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6 0
3 years ago
Farah Snack Co. has earnings after taxes of $108,750. Interest expense for the year was $20,000; preferred dividends paid were $
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Answer:

$0.9

Explanation:

Data provided in the question:

Earnings after taxes = $108,750

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Earnings per share on the common stock

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On January 1 of this year, Ikuta Company issued a bond with a face value of $100,000 and a coupon rate of 5 percent. The bond ma
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