Cape Corp. will pay a dividend of $2.64 next year. The company has stated that it will
Question:
Cape Corp. will pay a dividend of $2.64 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock? What if you want a return of 8 percent? What does this tell you about the relationship between the required return and the stock price?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
Here we need to value a stock with two different required ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
Sure Corp. operates under ideal conditions of certainty. It acquired its sole asset on January 1, 2015. The asset will yield $ 600 cash at the end of each year from 2015 to 2017, inclusive, after...
-
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.35 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock...
-
Micro, Inc. will pay a dividend of $2.30 per share next year. If the company plans to increase its dividend by 9 percent per year indefinitely, and you require a 12 percent return on your investment,...
-
Class Median Midpoint, x Income, I 19.5 $12,965 An individual's income varies with age. The table shows the median income I of individuals of different age groups within the United States for a...
-
Let's suppose that you have karyotyped a female fruit fly with red eyes and found that it has three X chromosomes instead of the normal two. Although you do not know its parents, you do know that...
-
The business of B Walnut purchased some non-current assets during the year ended 30 June 2022. A photocopier (office equipment) was purchased on 31 July 2021 for $4147 ($3770 + $377 GST) and is to be...
-
Refer to Exercise E-4 and for each of the November transactions identify the journal in which it would be recorded. Assume the company uses a sales journal, purchases journal, cash receipts journal,...
-
Decenture has four new IT hires available for assignment to ERP implementation projects. Their expertise varies across platforms and technologies, resulting in different time estimates for completing...
-
Bank Reconciliation and Entries The cash account for American Medical Coat April 30 indicated a balance of $12,870. The bank statement indicated balance of 514,90 on Apr 30. Comparing the bank...
-
A store maintains data on customers, products and purchase records in three tables: CUSTOMER, PRODUCT, PURCHASE. The store manager wants to know which product is on its maximum discount for each...
-
E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a...
-
The Blooming Flower Co. has earnings of $3.68 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21?
-
Stephen, Eric, and the Kaptor Group were all customers of the same bank. Stephen was involved in a business arrangement with the Kaptor Group, pursuant to which he made regular payments to Kaptor by...
-
As of June 30, 2012, the bank statement showed an ending balance of \(\$ 13,879.85\). The unadjusted Cash account balance was \(\$ 13,483.75\). The following information is available: 1. Deposit in...
-
An engineering study has developed the following cost data for the production of product A: (1) If the current production level is 1,500 units, what is the incremental cost of producing an additional...
-
On December 1, a group of individuals formed a corporation to establish the Local, a neighborhood weekly newspaper featuring want ads of individuals and advertising of local firms. The free paper...
-
Design an arithmetic circuit with one selection variable S and two n-bit data inputs A and B. The circuit generates the following four arithmetic operations in conjunction with the input carry C in ....
-
For the system you chose for Problems and Exercises 3, complete section 4.0, A-C, Management Issues, of the BPP Report. Why might people sometimes feel that these additional steps in the project plan...
-
a. On the same grid, sketch the graphs of y = sin x and y = 1 + cos 2x for 0 x 360. b. State the number of roots of the equation sin x = 1 + cos 2x for 0 x 360.
-
Define the term utility software and give two examples.
-
You find a certain stock that had returns of 9 percent, 16 percent, 21 percent, and 17 percent for four of the last five years. If the average return of the stock over this period was 11.3 percent,...
-
A stock has had returns of 14 percent, 18 percent, 26 percent, 19 percent, 34 percent, and 9 percent over the last six years. What are the arithmetic and geometric returns for the stock?
-
A stock has had the following year-end prices and dividends: What are the arithmetic and geometric returns for the stock? Price $43.15 48.13 57.05 45.13 52.05 61.13 Year Dividend $.45 .49 .55 62 .68
-
XF Ltd. Is an expanding private company in the electric trade. Accounts preparing in January 2019 included the following information: Profit Statement for the year ended 31 st December 2018 Kshs.000...
-
Check On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C., for $340 million. The expected completion date is April...
-
Q.1 Bassem Company purchased OMR420,000 in merchandise on account during the month of April, and merchandise costing OMR $350,000 was sold on account for OMR 425,000. Required: 1. Prepare journal...
Study smarter with the SolutionInn App