The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
Answer:
1- 3(BDE)
2- 37.18 (83.36 - 46.18=64)
3- 64 (83.36 - 19.36)
4- 140.2 (56.84 + 83.36=140.2)
If the problem is 6r•s•4rt•10rst, then the answer is 240•r^3•s^2•t^2.
Ok so differentiate the function, then set it as an inequality, if the function is increasing the gradient is positive >0 (so just make the differentiated function more than 0 to solve for the set of values of x) :)
Compare corresponding sides
DE/LM = 15/6
Then simplify the ratio
DE/LM = 5/2
DE/LM = 2.5/1
The scale factor of dilation is 2.5:1
