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
ziro4ka [17]
3 years ago
7

What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and

has a required return of 18%?
Business
1 answer:
Viktor [21]3 years ago
6 0

Answer:

8.9

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

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

r = cost of equity

g = growth rate

50 = [4 x (1 +g)] / (0.18 - g)

50(0.18 - g)  = 4(1 +g)

You might be interested in
The agreements that set terms for various aspects of commercial relations with other countries such as the right to conduct busi
Ivan
The agreements that set terms for various aspects of commercial relations with other countries such as the right to conduct business in the treaty partner's domestic market are called <span>friendship, commerce, and navigation (FCN)  treaties. Correct answer: C
</span><span>This document includes several aspects: human rights, trade and investment protection in international diplomacy.</span>
8 0
3 years ago
The business arrangement in the newspaper industry in which two separately owned papers in the same city are permitted to combin
musickatia [10]

Answer: Joint operating agreement

Explanation:

 The joint operating agreement is one of the concept that helps in protecting the business or the industry from the failure that helps in governing the partnership between any two organization.

In this type of agreement any two organization are basically contributing their power and the resources for producing the effective result.

According to the given question, the newspaper industry is one of the example of joint operating agreement in which two companies are permitted for combining their business. Therefore, Joint operating agreement is the correct answer.

8 0
3 years ago
The best indication of a property's value comes from:
Andrej [43]
I believe the correct answer is option C. The best indication of a property's value comes from recently sold properties. A property's value would be higher when the place is a transportation access point and around it many infrastructure are present or it is a tourist spot.
8 0
3 years ago
:
Rasek [7]
Hi the correct answer would be C hope this helps you!
Good luck!
3 0
3 years ago
Read 2 more answers
There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending Univers
LenaWriter [7]

Answer:

Substitutes

Explanation:

The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.

Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.

4 0
3 years ago
Other questions:
  • On January 1, 2018, Brian Company purchased at par $831,000, 6 percent bonds issued by Laura Company to be held as available-for
    7·1 answer
  • An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on thre
    14·1 answer
  • Jana completed an informational interview with a preschool teacher in her area. She wants to write a thank-you letter. What shou
    15·1 answer
  • As a consumer eats additional pieces of pizza, total utility will _____.
    11·1 answer
  • Over time, external monitoring processes should capture information about the external environment in a format that can be refer
    5·1 answer
  • The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
    15·1 answer
  • Provide an example of two companies that have built in effective co-opetition. Briefly explain the benefit of the relationship d
    11·1 answer
  • Toyota marketed its RAV4 hybrid model to a distinct segment of consumers as an adventurous, sporty hybrid that stands out as bei
    13·1 answer
  • Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
    5·1 answer
  • Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!