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Ksivusya [100]
2 years ago
10

has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per y

ear forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend
Business
1 answer:
miskamm [114]2 years ago
6 0

Answer:

$26

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(2.5 x 1.04) / ( 0.14 - 0.04) = $26

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John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), o
otez555 [7]

Answer: $40,710

Explanation:

John's annual compensation includes his actual annual salary as well as the various payments that Heinlein Hillclimbers makes on his behalf.

His total annual compensation is:

= Annual salary + Employer's 401 contribution + Health insurance + Life insurance + AD&D + Profit sharing bonus + Tuition reimbursement + employer only taxes and insurance

= 26,500 + (150 /2 * 12 months) + (150 * 12 months) + (30 * 12 months ) + (50 * 12 months ) + (2% * 26,500) + 5,250 + (18% * 26,500)

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?in order to receive customers' feedback on the company's latest product, the marketing managers of havtol inc., a food products
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Regards,

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