Answer:
Ask a new question
University of Arkansas FINN FINN 005 iv) Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that the firm's most...
Question
iv) Vicky Robb is considering purchasing the common stock of Hawaii
Industries, a rapidly growing boat manufacturer. She finds that the firm's most recent (2020) annual dividend payment was $2.50 per share. Vicky estimates that these dividends will increase at a 20% annual rate, g1, over the next 3 years (2021, 2022, and 2023) because of the introduction of a hot new boat. At the end of the 3 years (the end of 2023), she expects the firm's mature product line to result in a slowing of the dividend growth rate to 8% per year, g2, for the foreseeable future. Vicky's required return, rs, is 15%.
Required: What is the current (end-of-2020) value of Hawaii's common stock, P0 = P2020.
I am pretty sure the answer is D.
Sorry that I dont know which one but it is A or C
Explanation:
I typically arrive at the school early, around 8:00. Sometimes I feel uncomfortable even though I usually meet with my friend Brandy while I’m waiting for class to start at 8:15. I have noticed there is a camera by the lunch table, but I’m not quite sure if it works.
That’s all I have time for that will give you a start I’m sorry
So first you do 5 times 2 is 10 and then you do 5 times 5 equal 25 10+25 = 35 and 5 times 7 is 35
