Business, 23.11.2019 02:31 FreyaLouise

Let’s look at a company that is currently not paying dividends. you predict that in five years the company will pay a dividend for the first time. the dividend will be $0.50 per share. you expect the dividend to grow at an 8% rate per year indefinitely at that time. the required return on companies like this one is 15%. what is the price of the stock today?
a. $5.39
b. $7.14
c. $4.08
d. $3.45
e. $1.75

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 02:50

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Answers: 3

Answer

Business, 22.06.2019 09:00

Almost 80% of business owners are clueless about the competition, resulting in a) lost market share and customers. b) needless lawsuits. c) uninspired products. d) lack of perseverance

Answers: 2

Answer

Business, 22.06.2019 16:40

Shawn received an e-mail offering a great deal on music, movie, and game downloads. he has never heard of the company, and the e-mail address and company name do not match. what should shawn do?

Answers: 2

Answer

Business, 23.06.2019 00:00

An attorney came to work on a saturday. when he signed in, he was advised by the morning security guard employed by the building management that he must be out of the building by 5 p.m., when it closes. however, he stayed past 5 p.m. to complete a brief that had to be filed on monday morning. at 5: 15 p.m., the afternoon security guard set the locks on all the doors of the building and left. because she was in a hurry, she did not check the sign-in sheet to make sure that everyone had signed out, contrary to mandatory procedures. when the attorney tried to exit 15 minutes later, he discovered that the doors were all locked and could not be opened from the inside. he used his cell phone to call for , and a supervisor from the building arrived and let him out shortly thereafter. if the attorney sues the building management for false imprisonment, is he likely to win?

Answers: 1

Answer

You know the right answer?

Let’s look at a company that is currently not paying dividends. you predict that in five years the c...

Questions