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
Delicious77 [7]
2 years ago
10

A stock is not expected to pay dividends for the next ten years. Eleven years from today, the stock is expected to pay a dividen

d of $9.82 per share. Dividends will then grow at 4.50 percent per year indefinitely. The expected return on this stock is 11 percent. What is one share of the stock worth today?
Business
1 answer:
8_murik_8 [283]2 years ago
7 0

Answer:

$53.21

Explanation:

using the dividend dividend discount model, we can calculate the terminal value at the end of year 10:

the terminal value at the end of year 10 = $9.82 / (11% - 4.5%) = $9.82 / 6.5% = $151.08

the present value (today) = $151.08 / (1 + 11%)¹⁰ = $$151.08 / 2.83942 = $53.21

You might be interested in
According to the video, what are some tasks Electrical Engineers perform? Check all that apply.
vazorg [7]

Answer:

A C E

Explanation:

cuz it is

3 0
3 years ago
Read 2 more answers
LO 1.3Briefly discuss the chain of command for someone being hired into an organization as a staff managerial accountant.
grin007 [14]

Answer:

A staff managerial accountant is part of the mid-level accounting management.

The top position in the chain of command is the Chief Financial Officer, who is in charge of all financial matters within the firm, especially of presenting accurate financial information at the end of the accounting year to management, stockholders, and potential investors.

Directly below him is the controller, an important position in charge of reporting financial statements during the year, and helping gather information for auditors during external audtis.

Below a staff managerial accountant would be lower level accounting who are in charge of bookeeping on a daily basis.

3 0
3 years ago
A. Define progressive income tax. Briefly create a few numbers to explain it.
Arisa [49]
How do i sent it to you
4 0
3 years ago
What were African slaves most often sold to Europeans in exchange for
Harrizon [31]
The answer to your question is  Guns.
6 0
3 years ago
Read 2 more answers
If an investor has a choice of investing money at 6% compounded daily or 6.025% compounded quarterly which one is best
Keith_Richards [23]

General Rule: Daily compounding gives a higher yield

Compounding works like this:

6.025% per quarter

Quarter 1: $100 x 6.025% = $6.025

Quarter 2: $106.025 x 6.025% = $6.388

Quarter 3: $112.413 x 6.025% = $6.7729

Quarter 4: $119.186 x 6.025% = $7.4491

Etc…

6% per day

Day 1: $100 x 6% = $6

Day 2: $106 x 6% = $6.36

...

Day 365: $193.47 x 6% = $11.96

6 0
2 years ago
Other questions:
  • Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a l
    13·1 answer
  • Sky Corp. was a wholly owned subsidiary of Jet Corp. Both corporations were domestic C corporations. Jet received a liquidating
    12·1 answer
  • Rent-A-Reck Incorporated finds that it can rent 60 cars if it charges $40 for a weekend. It estimates that for each $5 price inc
    5·1 answer
  • Insurance is deemed by some as a social and merit good. Discuss the pros and cons of insurance within the context of it being de
    15·1 answer
  • Describe two differences between Locke's and Maslow's theory of motivation..
    13·1 answer
  • An analysis of a firm's financial ratios over time that is used to determine the improvement or deterioration inits financial si
    10·1 answer
  • Journalize the following transactions.a. On December 1, $13,250 was received for a service contract to be performed from Decembe
    11·2 answers
  • What is bad customer service ? with example​
    9·2 answers
  • 7. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual paymen
    14·1 answer
  • After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what s
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!