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

Question

1 Approved Answer

A stock has a share price of $52.00 and an expected annual return of 9.42 percent. The stock is expected to pay a constant dividend

A stock has a share price of $52.00 and an expected annual return of 9.42 percent. The stock is expected to pay a constant dividend forever with the next annual dividend expected in 1 year. What is the present value of the annual dividend that is expected in 4 years from today?(Round the value to 100th decimal)

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

Handbook Of Digital Media And Communication

Handbook Of Digital Media And Communication

Authors: Leah Lievrouw ,Brian Loader

1st Edition

036761233X, 978-0367612337

More Books

Students also viewed these Finance questions

Question

★★★★★
If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing-FIFO, LIFO, or average cost-will yield (a) The highest inventory cost, (b)...

Answered: 1 week ago

Question

★★★★★
Regression through the origin. Consider the following regression through the origin: Y i = 2 X 2i + 3 X 3i + u i a. How would you go about estimating the unknowns? b. Will u i be zero for this...

Answered: 1 week ago

Question

★★★★★
Why would Argentina have to give the United States seigniorage if it gave up its peso and completely dollarized its economy? How would you measure the size of Argentina's sac- rifice of seigniorage?...

Answered: 1 week ago

Question

★★★★★
Hanover leased a portion of his farm to Brown and Black, doing business as the Colorite Hatchery. Brown went upon the premises to remove certain chicken sheds that he and Black had placed there for...

Answered: 1 week ago

Question

★★★★★
A stock has a share price of $52.00 and an expected annual return of 9.42 percent. The stock is expected to pay a constant dividend forever with the next annual dividend expected in 1 year. What is...

Answered: 1 week ago

Question

★★★★★
Button Company has the following two temporary differences between its income tax expense and income taxes payable. The income tax rate for all vears is 20% Button Company has the following two...

Answered: 1 week ago

Question

★★★★★
Researchers conduct a RCT to test the impact of a literacy program on a set of student volunteers, and have the following information. Average Literacy Rate in the US Population is = 80% Average...

Answered: 1 week ago

Question

★★★★★
T5.4 Computer voice recognition software is getting better. Some companies claim that their software correctly recognizes 98% of all words spoken by a trained user. To simulate recognizing a single...

Answered: 1 week ago

Question

★★★★★
Below is a frequency table for the General Social Survey variable SOCOMMUN, which is based on the survey question, "How often do you spend an evening with someone who lives in your neighborhood?" In...

Answered: 1 week ago

Question

★★★★★
1. [5 marks] Consider L = lim n 6 1 -(+) i= Write down an integral with value L. Justify your expression.

Answered: 1 week ago

Question

★★★★★
Check Your Understanding Practise 1. Determine whether each relation is a function or is not a function. Give a reason for your answer. a) (1, 2), (0, 1), (1, 2), (2, 5) b) (3, 12), (4, 12), (5, 14),...

Answered: 1 week ago

Previous Question Next Question