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

Question

00
1 Approved Answer

Alex has 50 shares of Hibiscus company. Based on the company's dividend policy, Alex will receive a total of 450 per year in perpetuity. What

Alex has 50 shares of Hibiscus company. Based on the company's dividend policy, Alex will receive a total of 450 per year in perpetuity. What is the value of each share if the required rate of return is 12 percent?

a. 66.67

b. 37.50

c. 80.00

d. 75.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

41. Fifteen telephones have just been received at an authorized service center. Five of these telephones are cellular, ve are cordless, and the other ve are corded phones. Suppose that these...

Answered: 1 week ago

Question

★★★★★
Do you believe Deloitte & Touche should have approved Livents decision to record the $12.5 million naming rights payment as revenue during the third quarter of 1997? Defend your answer. What broad...

Answered: 1 week ago

Question

★★★★★
The BLANK checkbox is available in the custom object settings and will allow Activities to be associated with the custom object. If this option is selected when the object is created, an Activity...

Answered: 1 week ago

Question

★★★★★
The managers of Gizmo Manufacturing Limited have gathered the following information to assist you in preparing the master budget for the first quarter of 2024. 1. Budgeted sales for the next four...

Answered: 1 week ago

Question

★★★★★
Which area do you think is most important for business success and explain 5 reasons why the selected topic is more important than other three in Operations Management 1. Operations strategy, 2....

Answered: 1 week ago

Question

★★★★★
Companies must have quantifiable and measurable strategic objectives so actual performance can be assessed and compared against planned metrics or figures. The sooner the monitoring and control...

Answered: 1 week ago

Question

★★★★★
Develop a complete mission statement for Belikin Beer Company in Belize. Make sure it covers all 9 components of a Mission Statement being: customers, products / services, markets, technology,...

Answered: 1 week ago

Question

★★★★★
Briefly describewhy you think that hotels, especially room operations place such an important and recurring training message to our employees on personalizing the guest experience

Answered: 1 week ago

Question

★★★★★
Differentiate between a problem-seeking decision-making strategy and a problem-solving decision-making strategy

Answered: 1 week ago

Previous Question Next Question