FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#2 The risk-free rate is 2.24% and the market risk premium is 9.61%. A stock with a of 1.58 just paid a dividend of $2.48.

image text in transcribed
#2 The risk-free rate is 2.24% and the market risk premium is 9.61%. A stock with a of 1.58 just paid a dividend of $2.48. The dividend is expected to grow at 22.69% for five years and then grow at 4.57% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Principles Of Sustainable Finance

Principles Of Sustainable Finance

Authors: Dirk Schoenmaker, Willem Schramade

1st Edition

0198826605, 978-0198826606

More Books

Students also viewed these Finance questions

Question

★★★★★
Led Foot drives his car carelessly into another car. The second car contains dynamite, which Led had no way of knowing. The collision causes an explosion, which shatters a window of a building half a...

Answered: 1 week ago

Question

★★★★★
a) List the ways in which data can be lost, adding some of your own. b) How does backup ensure availability?

Answered: 1 week ago

Question

★★★★★
10. What are the benefits and drawbacks to a GUI operating system interface?

Answered: 1 week ago

Question

★★★★★
Zak Corp. purchased depreciable assets costing $600,000 on January 2, 2010. For tax purposes, the company uses CCA in a class that has a 40% rate. For financial reporting purposes, the company uses...

Answered: 1 week ago

Question

★★★★★
You purchase a bond today for $927.50. The bond is a 17-year semiannual coupon bond with coupon rate of 6.5 percent and face value of $1,000. Just after purchasing the bond, and before receiving the...

Answered: 1 week ago

Question

★★★★★
Which of the following statements is most accurate? A) A cost-leadership strategy will increase threat of new entry by lowering cost-based barriers to entry. B) Firms that have a low-cost position...

Answered: 1 week ago

Question

★★★★★
The Situation: During the wedding reception of Jeremy and Megan Fielding at the Fielding family mansion, Blake Rosewood, a guest at the wedding, ran yelling into the main ballroom, having discovered...

Answered: 1 week ago

Question

★★★★★
Final Assignment (To be completed by the student) 1. Briefly describe the ISD process, compare and outline the components. (200 words - 4 marks) Given the Needs Analysis provided by the company to...

Answered: 1 week ago

Question

★★★★★
An automated, swinging security light, hanging from the corner of a 35 ft tall building, is lighting the ground in front of the building. The angle 0 (see image below) is increasing at a rate of 0.6...

Answered: 1 week ago

Question

★★★★★
A department has three machines. The following figures indicate the departmental expenses for the most recent month Depreciation of machinery Depreciation of building Repairs to machinery Insurance...

Answered: 1 week ago

Question

★★★★★
In this module, you will plan a diving trip. You will need to know estimates of the pressure changes that you will experience. For example, if you estimate reaching depths of 200 ft (61.0 m). The...

Answered: 1 week ago

Question

★★★★★
2. What does the other person defi ne as the beginning?

Answered: 1 week ago

Question

★★★★★
1. What do you defi ne as the start of interaction?

Answered: 1 week ago

Question

★★★★★
1. To appreciate the importance of symbolic capacities, imagine the following: living only in the present without memories or hopes and plans; thinking only in terms of literal reality, not what...

Answered: 1 week ago

Previous Question Next Question