Answer:
$11.98
Explanation:
A share of common stock just made a dividend payment of $1.00
The expected long-run growth rate of for this stock is 5.4%
= 5.4/100
= 0.054
The investors required rate of return is 14.2%
= 14.2/100
= 0.142
The first step is to calculate the dividend year 1(D1)
D1= Do(1+g)
= 1(1+0.054)
= 1×1.054
= $1.054
Therefore, the stock price can be calculated as follows
Po= D1/(rs-g)
= 1.054/(0.142-0.054)
= 1.054/0.088
= $11.98
Hence the Stock price is $11.98
Answer:
Fixed Exchange Ratio
Explanation:
A fixed exchange ratio is the pre defined amount of acquirer shares for each share of target share outstanding. It is the ratio guarantees the target shareholders a certain level of ownership in the acquirer once the transaction completes. It is used in measuring the total number of shares the acquiring company has to issue for each individual share of the target firm.
Answer:
bruh ok look its A
Explanation:
because this fool just got me wrong