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saul85 [17]
3 years ago
12

Suppose a REIT pays out a dividend today of $3.00 and the projected dividend growth rate is 2%. The investor has a required rate

of return/discount rate of 5%. According to the Gordon dividend discount model, what is the REIT’s stock worth today?
Business
1 answer:
blsea [12.9K]3 years ago
6 0

Answer:

current stock price = $153

Explanation:

P₀ = Div₁ / (Re - g)

  • P₀ = current price = ?
  • Div₁ = next years's dividend = $3.00 x 1.02 = $3.06
  • Re = cost of equity = 5%
  • g = growth rate = 2%

P₀ = $3.06 / (5% - 2%) = $3.06 / 3% = $153

current stock price (P₀) = $153

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Why do you think effective planning is necessary in achieving our objectives?
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Where can a Master Admin Accountant User view the apps connected to a client’s QuickBooks Online account from within QuickBooks
sashaice [31]

Answer:

The answer is below

Explanation:

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3 years ago
__________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring,
olga55 [171]

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Secondary Activities

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2 years ago
CodeHead Software Inc. does software development. One important activity in software development is writing software code. The m
Irina18 [472]

Answer:

Explanation:

Standard hours per week = 40 hours

Standard rate per hour = $32

Actual rate per hour = $40

Labour rate variance = 40 - 32 = $8 (unfavourable)

Actual cost per week = 40 × 40 = $1600

Standard cost per week = 40 × 32 = $1280

Labour cost variance = actual cost per week - standard cost per week

= 1600 - 1280

= $320 (unfavourable)

Actual codes written in first week = 5650

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Actual cost per code = 1600/5660 = $0.2832

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Labour efficiency variance = 0.2832 - 0.256 = $0.0272 (unfavourable)

If the team generated 4,650 lines of code according to the original plan:

Code generated = 4650

Number of programmers = 5

Average codes per hour per programmer = 25

Total codes per hour = 25 × 5 = 125

Standard codes per week = 40 × 125 = 5000

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Labour time variance = 2.8 hours

Cost of idle time = 2.8 × 32 = $89.6 (unfavourable)

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