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

Question

1 Approved Answer

a company announces to pay constant annual dividends of $8.00 and you calculate the price of the stock as $80 based on dividends. you expect

a company announces to pay constant annual dividends of $8.00 and you calculate the price of the stock as $80 based on dividends. you expect the required rate of return and dividends will stay the same on the future. what do you expect the price of the stock to be 10 years from now
85.60
80.00
88.00
77.60
75.20

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

Investments Analysis And Management

Investments Analysis And Management

Authors: Charles Jones, Nick Jones

11th Edition

0470477121, 9780470477120

More Books

Students also viewed these Finance questions

Question

★★★★★
Do students at your school study more than, less than, or about the same as students at other business schools? BusinessWeek reported that at the top 50 business schools, students studied an average...

Answered: 1 week ago

Question

★★★★★
internal rate of return 14.6% while the required return is 10%. net present value 34,500. project requires initial investment 70,000. what is profitability index of project

Answered: 1 week ago

Question

★★★★★
What are The major types of research designs

Answered: 1 week ago

Question

★★★★★
Alfonso Sheen recently opened his own accounting firm, which he operates as a corporation. The name of the new entity is Alfonso Sheen, CPA. Sheen experienced the following events during the...

Answered: 1 week ago

Question

★★★★★
a company announces to pay constant annual dividends of $8.00 and you calculate the price of the stock as $80 based on dividends. you expect the required rate of return and dividends will stay the...

Answered: 1 week ago

Question

★★★★★
The height of the water, H, in feet, at a boat dock t hours after 6 A.M. is given by H = 27 +9 sint. Complete par (a)-(c). (a) Find the height of the water at the dock at 6 A.M., 9 A.M., noon, 6...

Answered: 1 week ago

Question

★★★★★
Case Study of Dick Jordan Dick Jordan is 32 years old and lives alone in an apartment he secures with a voucher from a community mental health center, where he receives services. Dick, who is...

Answered: 1 week ago

Question

★★★★★
Olivia was just hired by a large organization that requires background checks for all employees. Olivia received an email asking her to use the enclosed link to begin the background check process....

Answered: 1 week ago

Question

★★★★★
Suppose that Xtel currently is selling at $78 per share. You buy 250 shares using $10,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin...

Answered: 1 week ago

Question

★★★★★
The organization that focuses on short-term immediate needs for the efficient development of internet technology is: 1 point The Internet Engineering Task Force The Internet Research Task Force The...

Answered: 1 week ago

Question

★★★★★
Arthur holds an auction of a rare painting with reserve. He opens the bidding at $1,000. Adele bids $1,500. Arthur changes his mind before the auctioneer says "sold". Which of the following...

Answered: 1 week ago

Previous Question Next Question