The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
each coind has a 1/2 probability of landing on heads
3 coins would be 1/2 x 1/2 x 1/2 = 1/8 probability
Answer:
276.3 sq ft
Step-by-step explanation:
Answer:
Option number 3: 1,356.48 cm².
Because the fraction with the lesser denominator divides the whole into less pieces that are essentially larger then the fraction with a greater denominator who divides the whole into more pieces, but smaller.
