carastudies7622 carastudies7622

28-12-2020
Business

contestada

Company XC is going to next dividend (Div1) of $2.00. The growth rate (g) of dividends is 2% and the required rate of return (r) is 10%. What is the stock price today?

Respuesta :

ewomazinoade ewomazinoade

30-12-2020

Answer:

$25

Explanation:

The answer can be found using the Gordon constant growth dividend model

Stock price = next dividend / required rate of return - growth rate

Stock price = D1 / r - g

$2 / 10% - 2%

$2 / 0.08 = $25

Answer Link

Otras preguntas

Order the numbers from least to greatest. 95,−2.5,−1.1,−45, 0.8

The Federalist Papers were written to encourage A) the adoption of the Bill of Rights. B) the ratification of the Constitution. C) delegates in Philadelphia t

Plant leaves _____. A. are made mostly of dermal tissue B. contain many parenchyma cells C. are covered with a waxy cortex D. absorb water and nutrients

Powers not explicitly reserved for the federal government are given to the states. What does the statement describe?

Explain what a viewpoint is, and describe two ways of effectively supporting a viewpoint.

Find the equation of the circle in standard form for the given center (h,k) and radius r: (h,k)=(0,0), r=9

A rational number can be written as the ratio of one blank to another and be represented by a repeating or blank decimal. What are the two vocabulary for this s

Sathish is going on a 200020002000-kilometer road trip with two friends. The car consumes 666 liters of gas for every 100100100 kilometers, and gas costs \$1.20

Mi amiga y yo _____________ veinte dólares en el cine. 1) pagamos 2) pagan 3) pagas 4) pago

From 1900 to 1929, what happened to the salary of an average worker in the united states