Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 20, 2024

12.45% 45 Giggle Inc. stock has an expected dividend (D1) of $1.75. The growth rate in dividends (g) is 3.5% and the required return

12.45% 45 Giggle Inc. stock has an expected dividend (D1) of $1.75. The growth rate in dividends (g) is 3.5% and the required return is 12%. What is the price of this stock? CALCO

Step by Step Solution

★★★★★

3.40 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

The price of a stock can be calculated using the Gordon Growth Model which ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Equity Asset Valuation

Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen

2nd Edition

470571439, 470571438, 9781118364123 , 978-0470571439

More Books

Students also viewed these Finance questions

Question

1.Most foreign investment is today directed toward high income countries because a. there are tax trades and subsidies available b. markets are larger so transportation costs are minimised by...

Answered: 1 week ago

Question

need a good reply for this post made on my form Excellent, Joseph. As you mentioned in your post there are a lot of factors or uncertainties that we need to evaluate to determine what type of...

Answered: 1 week ago

Question

★★★★★

Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company, an employ mentagency that supplies word...

Answered: 1 week ago

Question

★★★★★

Multi-Star, Inc., had sales of $890,000, cost of sales and operating expenses of $450,000 and $200,000, respectively, and 10,000 shares of common stock outstanding. Calculate the amount of earnings...

Answered: 1 week ago

Question

★★★★★

In addition to testing claims involving Ï12 and Ï22, we can also construct interval estimates of the ratio Ï12/Ï22 using the following expression: Here FL and FR are as described...

Answered: 1 week ago

Question

★★★★★

Determine the sequence of distillation columns required to separate a mixture of six components AF into individual species. The molar flows are 15, 5, 20, 25, 55, and 10 kmol/h, respectively, and the...

Answered: 1 week ago

Question

★★★★★

We have n boxes and for i = 1, 2,, n, the ith box contains ni balls of which ri are white, and the remaining are black. We first select a box and then choose randomly one of the balls in that box....

Answered: 1 week ago

Question

★★★★★

Recovery Enterprises sells a product for $ 90 per unit. The variable cost is $ 60 per unit, while fixed costs are $ 45,000. Determine (a) The break-even point in sales units (b) The break-even point...

Answered: 1 week ago

Question

★★★★★

7 Venture capitalists are a part of investment banking corporate finance asset management private equity

Answered: 1 week ago

Question

★★★★★

Second National Bank is considering adding 5 new ATM machines. Each machine costs $25,000 and installation costs are $15,000 per machine. Second National Bank expects the new machines to save $0.33...

Answered: 1 week ago

Question

★★★★★

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

★★★★★

What Is acidity?

Answered: 1 week ago

Question

★★★★★

Explain the principles of delegation

Answered: 1 week ago

Question

★★★★★

State the importance of motivation

Answered: 1 week ago

Question

★★★★★

Discuss the various steps involved in the process of planning

Answered: 1 week ago

Question

★★★★★

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead...

Answered: 1 week ago

Question

★★★★★

Suppose that the laptop of Prob. 2.16 is placed in an insulating briefcase with a fully charged battery, but it does not go into sleep mode, and the battery discharges as if the laptop were in use....

Answered: 1 week ago

Question

★★★★★

An analyst plans to use P/E and the method of comparables as a basis for recommending purchasing shares of one of two peer - group companies in the business of manufacturing personal digital...

Answered: 1 week ago

Question

★★★★★

Jim Martin is using economic value added (EVA) and market value added (MVA) to measure the performance of Sundanci. Martin uses the following fiscal year 2000 information for his analysis: Adjusted...

Answered: 1 week ago

Question

★★★★★

Indicate the effect on this periods FCFF and FCFE of a change in each of the items listed here. Assume a $ 100 increase in each case and a 40 percent tax rate. A. Net income. B. Cash operating...

Answered: 1 week ago

Question

★★★★★

Determine whether the product AB is defined, indicate what the dimensions of the product matrix will be, and find the product matrix, given The product AB is defined: the product matrix will be 2 2....

Answered: 1 week ago

Question

★★★★★

Redo Problem 5.15 for outlet 3 in Problem 5.3. Here Q = [29 36 24 32], P remains the same, and V=QP=29(400) +36 (300) + 24(250) + 32(500) = 44,400

Answered: 1 week ago

Question

★★★★★

If the price of a TV is $400, the price of a stereo is $300, the price of a VCR is $250, and the price of a camcorder is $500, use vector multiplication to find the value of stock for outlet 2 in...

Answered: 1 week ago

Previous Question Next Question