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
daser333 [38]
3 years ago
9

The Back Room just paid an annual dividend of $1.50 a share. The firm expects to pay dividends forever and to increase the divid

end by 4.5 percent annually. What is the expected value of this stock six years from now if the discount rate is 12 percent
Business
1 answer:
umka2103 [35]3 years ago
6 0

Answer:

$26.05

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 + growth rate)

d0 = dividend that was just paid

r = cost of equity

g = growth rate

1.5 x (1.045^6) / 12 - 4.5 = $26.05

You might be interested in
Are futures a good way to save for a retirement?
Tomtit [17]
At Equitable, We Believe That The Best Plan For The Future is One Tailored To You. Equitable Can Help You Plan for the Future, No Matter How
6 0
4 years ago
The risk premium (hence expected return) of a security is determined by its ________ risk and does not depend on its ___________
Rzqust [24]

Answer:

systematic risk ,diversifiable risk

Explanation:

risk premium is the investment return demanded by an investor for buying a risky assets that an investment is anticipated to deliver it reward to those who are willing to take higher risk than investors who prefer risk free investment.

systematic risk when economic treds influence assets and the market in similr way than investment risk for similr assets are corellated Systematic risk cannot be diversified away. Non-systematic risk, or the risk unique to each individual security, meanwhile, can be mitigated through diversification.

conclusion: both the sytematic and nom systematic risk are the influencing factor of the risk premium while sytematic risk is not influenced by market but diversfiable risk are influenced by market .

brainly.com/question/14055202?utm_source=android&utm_medium=share&utm_campaign=question

#spj4

7 0
2 years ago
London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorr
Natalija [7]
They have to recount each thing
5 0
3 years ago
When may an item attached to a structure be considered personal property rather than real property?
GaryK [48]

An item of personal property that has been converted to real property. Even though it is attached to a structure, an item may be considered personal property rather than real property if: A. the owner originally intended to remove it after a period of time.

Any movable thing or intangible object of value that is able to being owned through someone and now not identified as actual belongings. personal belongings may be characterized as either tangible or intangible. Examples of exact non-public assets consist of motors, furnishings, boats, and collectibles. stocks, bonds, and financial institution bills fall underneath intangible personal belongings.

Movable assets on land (large livestock, for example) become no longer automatically sold with the land, it become "non-public" to the owner and moved with the proprietor.

Learn more about personal property here brainly.com/question/5321219

#SPJ4

8 0
2 years ago
True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.
gogolik [260]

The statement that individuals have social responsibilities regarding their ethical behavior in the business world is True.

This is because, individuals Social responsibility have a way if affecting the ethical behavior, in business and society as a whole.

<h3>What is Social responsibility?</h3>

Social responsibility can be explained as a responsibility of individuals as well as companies as regards their duty in order to act in the best interests of the society.

Learn more about Social responsibility at:

brainly.com/question/1594159

8 0
3 years ago
Other questions:
  • The job seeker's name should be the biggest element of the résumé. <br> True/ False
    13·2 answers
  • Private goods are offered only to individuals who _____ such a good..
    15·1 answer
  • In preparing its June 30, bank reconciliation, a company has available the following information:
    15·1 answer
  • Which of the following statements is true a. ​in market equilibrium there are unconsummated value-creating transactions b. ​in m
    8·2 answers
  • A liability can be described as....
    11·2 answers
  • What does a formula do in a spreadsheet program? Apex
    10·2 answers
  • In 2020, Sheridan Company, issued for $102 per share, 94000 shares of $100 par value convertible preferred stock. One share of p
    6·1 answer
  • When TOMS first introduced their shoes, they created a shoe that was extremely simple and cheap to produce. But the firm made a
    11·2 answers
  • Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment i
    14·1 answer
  • Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the e
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!