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Yanka [14]
2 years ago
10

You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $

2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?
Business
1 answer:
melamori03 [73]2 years ago
5 0

Answer:

$25

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

2/ 0.13 - 0.08 = $25

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Answer:

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Contract theory -

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3 years ago
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Answer:

The journal entry would be as follows:

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4 0
3 years ago
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The type of selection methods which are used to narrow down a list of finalists to those who will receive job offers is called Discretionary Method.

Picking from a list of universities one would like to attend is the hardest decision to make. However, it is crucial to take into account a number of criteria while selecting the best decision. When you have a long list of options, the registrars will find it simple to advise you on which is best.

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6 0
1 year ago
Based on the Taylor Rule use the following information to calculate the target federal funds rate.
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