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

Question

1 Approved Answer

A companys dividend grows at a constant rate of 4 percent p.a.. Last week it paid a dividend of $0.82. If the required rate of

A companys dividend grows at a constant rate of 4 percent p.a.. Last week it paid a dividend of $0.82. If the required rate of return is 16 percent p.a., what is the price of the share 4 years from now? (round to nearest cent)

Select one:

a. $8.31

b. $7.99

c. $4.59

d. $12.87

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

Fundamentals Of Corporate Finance

Fundamentals Of Corporate Finance

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

5th Edition

1119795435, 978-1119795438

More Books

Students also viewed these Finance questions

Question

★★★★★
An agricultural scientist planted alfalfa on several plots of land, identical except for the soil pH. Following are the dry matter yields (in pounds per acre) for each plot. pH Yield...

Answered: 1 week ago

Question

★★★★★
1 What does the value systemic approach bring to individual coaching from your perspective?

Answered: 1 week ago

Question

★★★★★
In a Rankine power system, 1.5 kg/s of steam leaves the turbine as saturated vapor at 0.51 bar. The steam is condensed to saturated liquid by passing it over the tubes of a shell-and-tube heat...

Answered: 1 week ago

Question

★★★★★
There was an upward trend in the ratio of the book value of debt to the book value of debt and equity throughout the 1990s. Some of this was due to the repurchasing of stock. The market value ratio...

Answered: 1 week ago

Question

★★★★★
Question 3: What type of unemployment is this? a. Grace who was working as a lumberj ack lost her job because the timber company she works for decided to buy chainsaws . Peter Pan was fired from his...

Answered: 1 week ago

Question

★★★★★
7) You, as a newly hired quality manager, would like to develop a presentation to convince the top management members to pursue ISO 901-20150 registration. Explain four important points of benefits...

Answered: 1 week ago

Question

★★★★★
Read and score the Conflict Styles Inventory by Gordy Curphy. W-rite a report discussing what you have learned from the Conflict Styles Inventory results and discuss the advantages and disadvantages...

Answered: 1 week ago

Question

★★★★★
Reminder: Your answers will be assessed based on content (i.e., the quality of the information presented; integration of class and text material), and organization. Your answers must make explicit...

Answered: 1 week ago

Question

★★★★★
Just clear organized easy answers to each question attached below, please. No copy paste. You are considering organizing an event to raise funds for a special cause (children living in poverty,...

Answered: 1 week ago

Question

★★★★★
Data is collected from 250 college students to determine if regular class attendance is related to overall Grade Point Average (GPA). The results are below. Percentage of Class Meetings Attended...

Answered: 1 week ago

Previous Question Next Question