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
Harlamova29_29 [7]
3 years ago
13

asino Inc. expects to pay a dividend of $3 per share at the end of year 1 (Div1) and these dividends are expected to grow at a c

onstant rate of 6 percent per year forever. If the required rate of return on the stock is 18 percent, what is the current value of the stock today?
Business
1 answer:
pentagon [3]3 years ago
5 0

Answer:

the current stock of the value today is $25

Explanation:

The computation of the current stock of the value today is shown below:

Next year dividend D1 = $3

growth rate g =6% forever

rate of return = 18%

So,

Current Stock Price P = D1 ÷ (r - g)

=3 ÷ (18% - 6%)

= 3 ÷ 12%

= 3 ÷ 0.12

= $25

Hence, the current stock of the value today is $25

You might be interested in
Consider a project that will payoff $2 million if it is successful and nothing if it is not successful. If the probability of su
Paul [167]

do you have to pay this all the bills

8 0
3 years ago
An investment project provides cash inflows of $705 per year for eight years. a. What is the project payback period if the initi
Yuki888 [10]

Answer: A. 2.05  B. 5.10   C. 0

Explanation: Payback period can be defined as the period under which the profits or savings in an investment can recover the initial outlay invested in that investment. In simple words we can say that it is the time required by an investment to pay for itself.

Pay back period is computed as follows :-

=\:payback\:period=\frac{\:Initial\:cash\:outlay}{cash\:inflows}

therefore,

A. =\:payback\:period=\frac{1450}{705}=2.05years

B.=\:payback\:period=\frac{3600}{705}=5.10years

C.=\:payback\:period=\frac{5800}{705}=0

7 0
4 years ago
Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an
weqwewe [10]

Answer:

a. 50, which is high by historical standards.

Explanation:

a. 50, which is high by historical standards.

It is high because  current price  is high than earnings.

Earning yield is  the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.

So

PRice Earning ratio = Market price per share/ Earning per share

Price Earning ration= $20/ 0.4 = 50

Earning per share= Earnings/ No of shares outstanding

EPS= $ 1 million/$ 2.5 million = 0.4

5 0
3 years ago
Peter is playing hide and seek with his six year old nephew teddy peter decides to look around the house room by room and then s
VladimirAG [237]
The question is incomplete. But it is about the method which is an example of problem solving strategy that Peter is using to find Teddy.
The answer is peter is Peter is using the method which is called algorithm  in problem solving strategy.
The complete question is;
Peter is playing hide and seek with his 6 yr old nephew, Teddy. Peter decides to look around the house room by room and then shuts the each door when he has finished looking in each room. The <span>method Peter is using to find Teddy is an example of which problem-solving strategy? </span>
7 0
3 years ago
Being optimistic judgmental and critical are creativity
Mashutka [201]

Answer:

yes, I suppose they could be traits of creativity although not the most common.

Explanation:

8 0
3 years ago
Other questions:
  • The brake pedal is low and spongy ; all brake adjustments have been completed according to specifications.the cause of the probl
    6·1 answer
  • A partial listing of costs incurred at archut corporation during september appears below: direct materials $ 113,000 utilities,
    14·1 answer
  • A goal that you want to achieve within the next year is what type of goal? A. A budget goal B. A financial goal C. A short-term
    5·1 answer
  • During the 1970s and 1980s, formal project management practices were put in place because the constraints were _____ and _____ b
    11·1 answer
  • According to the interest rate effect, an increase in the price level leads to ________ in the interest rate, and therefore to _
    10·1 answer
  • When a student is given two seemingly different problems to solve, but the problems have the same underlying logical requirement
    7·1 answer
  • Retained earnings, december 31, 2015 $ 313,700 cost of equipment purchased during 2016 32,000 net loss for the year ended decemb
    15·2 answers
  • What types of services do property taxes typically pay for?
    6·2 answers
  • During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about ho
    5·2 answers
  • In 2009, the financial crisis in the United States was triggered by Group of answer choices the global hike in the price of crud
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!