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
seraphim [82]
3 years ago
11

PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a

return of 12% on the firm's equity. What is the current value of the stock?
Business
1 answer:
oee [108]3 years ago
8 0

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

You might be interested in
Restricting imports of Brazilian shoes will__________.
KatRina [158]

Answer:

a. raise the price of both Brazilian and domestically produced shoes

Explanation:

Restricting imports of Brazilian shoes will raise the price of both Brazilian and domestically produced shoes

5 0
3 years ago
Retail companies compete based on:
MatroZZZ [7]

Answer: D. all of the above

Explanation:

6 0
3 years ago
Sally values creativity. which of these careers is most likely the best for her
Lina20 [59]
If sally is creative then being a poet would make the most sense 
7 0
4 years ago
Read 2 more answers
Ethical formalists maintain that
andrew-mc [135]
Ethical formalists maintain that moral judgement should be based on logical form,that is,like laws that should be obeyed,rather then by their content,that is,judgement about activities or people.
3 0
3 years ago
What is the number one reason that it projects fall behind schedule or fail?
daser333 [38]
Poor planning or poor project management is the number one reason why projects fall behind schedule or fail. We all know how important it is to plan before acting, even more in the area of ​​management of the different areas of the project, it is important to define the objectives of the project from day one, defining them will mean success or failure of the project and from this point to advance in the planning of all areas before starting to do any work.
7 0
3 years ago
Other questions:
  • Exercise 13-11 The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at
    10·1 answer
  • Which sentences correctly describe the precautions you can take to protect your personal information as a consumer? Elizabeth li
    11·2 answers
  • Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that a
    7·1 answer
  • Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considere
    6·1 answer
  • The scenario in which students sleep in their bedrooms from 2:00
    15·1 answer
  • A roofing company would like to implement a new method for giving estimates. The owner has narrowed his choice to three differen
    9·1 answer
  • In part, a transaction affects the accounting equation by decreasing an asset. There is no effect on liabilities. Which of the f
    14·1 answer
  • "University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum
    12·1 answer
  • Milan Company issued bonds with a face value of $200,000 on January 1, 2018. The bonds had a 7 percent stated rate of interest a
    12·1 answer
  • True or False. Since grant proposals need to be short, budget and personnel information should not be included.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!