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Yuliya22 [10]
2 years ago
9

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.05 per share on its stock. The dividends are expected to grow at

a constant rate of 7 percent per year indefinitely. If investors require a 14 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? Answer with 2 decimals (e.g. 10.12).
Business
1 answer:
Lostsunrise [7]2 years ago
4 0

Answer:

the current share price is $16.05

Explanation:

The computation of the current share price is as follows;

= Dividend ÷ (required rate of return - growth rate0

= $1.05 × 1.07 ÷ (14% - 7%)

= $1.1235 ÷ 0.07

= $16.05

Hence, the current share price is $16.05

The same should be considered and relevant

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4 0
2 years ago
Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stoc
denis23 [38]

Answer:

b. decrease no effect

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Read 2 more answers
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