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
lorasvet [3.4K]
3 years ago
10

Prudential is expected to pay an annual $1.25 dividend in the coming year. Dividends are expected to grow at the rate of 4% per

year. The risk free rate is 2% and the market risk premium is 5%. Prudential has a beta of 0.8. The value of the stock should be:
Business
1 answer:
Stolb23 [73]3 years ago
6 0

Answer:

$62.5

Explanation:

The value of the stock = dividend to be paid next year / required rate of return - growth rate

required rate of return = risk free rate + (risk premium x beta)

2% + (0.8 x 5%) = 6%

1.25 /6% - 4% = 1.25 / 0.06 - 0.04 = $62.5

You might be interested in
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 millio
jonny [76]

Answer:

$45.027 million

Explanation:

The accounting equation shows the relationship between the various elements of the balance sheet. These are the assets, liabilities and equity. It is given as

Assets = Liabilities + Equity

The owner's equity is made up of the common stock and retained earnings (which is the net income less dividend paid over the period).

Equity = $125.989 million - $77.152 million

= $48.837  million

Retained earnings = Equity - Common stock

= $48.837  million - $3.810 million

= $45.027 million

Digby Corporation's retained earnings is $45.027 million

5 0
3 years ago
HURRY NEED ANSWER ASAP which feature of a GUI browser allows you to list URL's that you use often
zlopas [31]
Bookmarks is the answer
3 0
3 years ago
Read 2 more answers
A resume should:
Tatiana [17]

Answer:

the answer would be A and D since i have too fill out a resume for appling for jobs in the past

Explanation:

like the owner or hiring person want to know a little more about your life and know about if you had other jobs and why did you leave them and if they feel a reason they will find out them self and see what they can do.And if your a felon in USA they will check on why did you go too jail and what for some will not hire felons cause they think they are not trust worthy i hope this helped you

3 0
4 years ago
Margot and Johnny; calendar year, cash basis taxpayers; file a joint return. Before any of the capital asset transactions below,
Mashcka [7]

Answer:

c. $107,600 taxable income: $23,672 tax liability.

Explanation:

Taxable Income calculation:

Taxable Income beginning $90,100

Add: gain on sales on Wal-Mart stock $13,000

Less: Loss on sale of PG&E stock $7,000

Add: Gain on Cisco common stock $11,500

Taxable Income at end $107,600

5 0
3 years ago
For manufactured goods, design blueprints specify a nominal dimension which is the:
denis-greek [22]

Answer:

d.

Explanation:

For manufactured goods, design blueprints specify a nominal dimension which is the specified target dimension of the goods. Which in other words is stating exactly how the product should look like as well as the functions that it must accomplish in order for the product to perform as expected when it is released into the market.

6 0
3 years ago
Other questions:
  • The JPY/AUD spot exchange rate is 82.42, the JPY interest rate is 0.15%, and the AUD interest rate is 4.95%. If the interest rat
    12·1 answer
  • LaTisha contracted with Marco, who operates a farm in Guatemala, for the importation of some great coffee beans for her coffee s
    5·1 answer
  • The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo
    10·1 answer
  • Turnbull Co. is considering a project that requires an initial investment of $570,000. The firm will raise the $570,000 in capit
    7·1 answer
  • For each of the following independent situations, determine whether any of the expenditures qualify as deductible education expe
    14·1 answer
  • January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T
    9·1 answer
  • When assessing whether product release deadlines were met during the first three months of the year, the quality assurance (QA)
    15·1 answer
  • In actual practice, managers most frequently use which two types of investment criteria?.
    7·1 answer
  • consider a hypothetical economy in which households spend 0.5 of each additional dollar they earn and save the remaining 0.5
    9·1 answer
  • you wish to buy a $25,000 car. the dealer offers you a 4-year loan with a 9 percent apr. what are the monthly payments?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!