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

Question

1 Approved Answer

DTX paid $9m ordinary dividend for its 4m outstanding shares. The company decides to pay no dividend next year but 4 per cent more dividend

DTX paid $9m ordinary dividend for its 4m outstanding shares. The company decides to pay no dividend next year but 4 per cent more dividend in the second next year. The same growth in dividend is expected to continue forever. If the market expects 13 per cent return from this company, what would be the value for DTX share today?

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_2

Step: 3

blur-text-image_3

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

Entrepreneurial Finance

Entrepreneurial Finance

Authors: Philip J. Adelman; Alan M. Marks

6th edition

9780133099096, 133140512, 133099091, 978-0133140514

More Books

Students also viewed these Finance questions

Question

DTX paid $9m ordinary dividend for its 4m outstanding shares. The company decides to pay no dividend next year but 4 per cent more dividend in the second next year. The same growth in dividend is...

Answered: 1 week ago

Question

Your help counts eith explanation 60 Price (Shour) 10 100 200 300 400 500 600 700 800 900 1000 Quantity (hours/week) 28. The figure above illustrates the demand and supply of Economics 101 tutoring...

Answered: 1 week ago

Question

Montonya Company has the following selected data for the current year: Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed...

Answered: 1 week ago

Question

★★★★★
Implement a generic Map that supports the put and get operations. The implementation will store a hash table of pairs (key, definition). Figure 5.55 provides the Map specification (minus some...

Answered: 1 week ago

Question

★★★★★
The iceberg of Fig. 2.20 can be idealized as a cube of side length L as shown. If seawater is denoted as S = 1, the iceberg has S = 0.88. Is it stable? Specific gavity Water S= 1.0

Answered: 1 week ago

Question

★★★★★
After doing all the calculations, Henry realizes that he underestimated the cost savings that would result from improved efficiency by $1000 per year. How should this error be handled? Is it...

Answered: 1 week ago

Question

★★★★★
Andrew tosses three coins. Find the probability that all three coins land heads if we know that (i) the first of the three coins landed heads; (ii) at least one coin landed heads.

Answered: 1 week ago

Question

★★★★★
A simple random sample of 25 observations is derived from a normally distributed population with a known standard deviation of 8.2. a. Is the condition that is normally distributed satisfied?...

Answered: 1 week ago

Question

★★★★★
Question : Internal controls and tests of controls : Stanford-Brown University runs residential colleges on each of its five campuses spread all over regional New South Wales. You are conducting the...

Answered: 1 week ago

Question

★★★★★
Brenda Jonstone owns a small product distribution company that currently employs a sales force of four people. The business is growing fast and Jonstone must begin to make decisions more...

Answered: 1 week ago

Question

★★★★★
Most of us are familiar that a general personality traits of a leader which includes confidence, humility, sense of humor, assertiveness and others. However, according to the reading this week there...

Answered: 1 week ago

Question

★★★★★
George Ltd manufactures and sells two different types of coils used in electric motors. In September, Jessica Martin, the management accountant, compiled the following data for the upcoming annual...

Answered: 1 week ago

Question

★★★★★
1 of 6 b) Find the average shear stress (Taver) in the bolts. Taver = ksi (Round to two decimal places.)

Answered: 1 week ago

Question

★★★★★
You just started a new position at Visionless Company and you are surprised that the organization does not have either a mission or a vision statement. Explain to the management four reasons why it...

Answered: 1 week ago

Question

★★★★★
Product A accounts for 75% of a company's total sales revenue and has a variable cost equal to 60% of its selling price. Product B accounts for 25% of total sales revenue and has a variable cost...

Answered: 1 week ago

Question

★★★★★
MAKE A COST OF GOODS MANUFACTURED AND SOLD STATEMENT BASED ON THE PROBLEM 1. Problem 1 . JOB ORDER COSTING IN A MANUFACTURING COMPANY. Palmera Company is a manufacturing firm that uses job-oder...

Answered: 1 week ago

Question

★★★★★
A company purchases a delivery van for $24,000. The van is estimated to have a four-year service life and a residual value of $2,400. During the four-year period, the company expects to drive the van...

Answered: 1 week ago

Question

★★★★★
What are current assets and current liabilities? How are they different from non-current assets and non-current liabilities?

Answered: 1 week ago

Question

★★★★★
The response variable is 2010 Energy Use. a) Explain the meaning of the 95% prediction intervals in this context. b) Explain the meaning of the 95% confidence intervals in this context. You can see...

Answered: 1 week ago

Question

★★★★★
Youth unemployment 2016. Here is a scatterplot showing the regression line, 95% confidence intervals, and 95% prediction intervals, using youth unemployment data for a sample of 33 nations. The...

Answered: 1 week ago

Question

★★★★★
Energy use and recession. The Great Recession of 2008 changed spending and energy use habits worldwide. Based on data collected from the United Nations Millennium Indicators Database related to...

Answered: 1 week ago

Previous Question Next Question