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Travka [436]
3 years ago
11

A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20 percent per year for the fo

llowing three years. Thereafter, the dividend growth rate is expected to be 3.5 percent per year forever. Investors require a rate of return of 12 percent on this stock. Calculate the annual dividend expected to be paid by the stock nine years from today (D9).
Business
1 answer:
navik [9.2K]3 years ago
5 0

Answer:

The annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share.

Explanation:

Note: See the attached excel file for the calculations of annual dividends expected to be paid the stock for Years 1 to 9.

In the attached excel file, the following formula is used:

Current year dividend = Previous year dividend * (100% + Growth rate)

From the attached excel file, the annual dividend expected to be paid by the stock nine years from today (D9) is $11.27 per share (Note: see the bold red color under the Year's 9 Current Year Dividend).

Download xlsx
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almond37 [142]

Answer:

answer is b

Explanation:

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Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

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3 years ago
When the indirect method is used, if accounts receivable increases during the accounting period, the change in accounts receivab
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3 years ago
What are the verbs in this sentence their fur helps them defend themselves
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You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $4,250 with low monthly pay
Kobotan [32]

Answer:

73 months

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Explanation:

The period of time it would take to pay off the loan can be determined using excel nper function as below:

=nper(rate,pmt,-pv,fv)

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pmt is the amount payment per month i.e $90

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3 years ago
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