Business, 04.01.2021 02:30 xXwolfieplayzXx

ETP Corp. paid an annual dividend last year of $5 per share. The company follows a policy to raise dividends each year by 2%. The company will be in business for 8 years and not have a liquidating dividend. The required rate of return for this investment is 10%. What is the price of this stock today? a. 63.75
b. 28.91
c. 28.34
d. 62.50

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Answer from: lexigarwood

b. $28.91

Explanation:

The current price will be the present value of all future dividend payments till the company ceases operations in 8 years.

Price of stock = Sum of present value of dividends

The dividends here are increasing at a rate of 2% per year.

Year Dividend Present Value

1 $5.10 5.10/ (1 + 10%) = $4.64

2 $5.20 5.20/ 1.1² = $4.30

3 $5.30 5.30 / 1.1³ = $3.98

4 $5.41 5.41 /1.1⁴ = $3.70

5 $5.52 5.52/1.1⁵ = $3.43

6 $5.63 5.63/1.1⁶ = $3.18

7 $5.74 5.74/1.1⁷ = $2.94

8 $5.85 5.85/1.1⁸ = $2.73

Total $28.91

Answer from: Quest

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues, with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

Answer from: Quest

you have to put the parentheses like this:

$(85-4) \div 9 \times 10$

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

$81 \div 9 \times 10 = 9 \times 10 = 90$

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ETP Corp. paid an annual dividend last year of $5 per share. The company follows a policy to raise d...

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