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

Question

00
1 Approved Answer

FGT. Corp. recently announced that all future dividends will be increased by 2 percent annually and the firm just paid their annual dividend of $2.20

FGT. Corp. recently announced that all future dividends will be increased by 2 percent annually and the firm just paid their annual dividend of $2.20 a share. What is the stock worth if the market requires a 14 percent rate of return?

Group of answer choices

$18.27

$18.33

$18.14

$18.70

$18.87

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

Recommended Textbook for

Fundamentals of Financial Management

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

12th edition

978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707

Students also viewed these Finance questions

Question

Why are systematic samples so important in HR Analytics? Name and explain four major considerations when building systematic samples.

Answered: 1 week ago

Question

★★★★★
Fong Corp. reported various transactions in 20X2: a. Equipment with an original cost of $32,500 and accumulated depreciation of $26,000 was deemed unusable and was sold for $250 scrap value. b. A new...

Answered: 1 week ago

Question

★★★★★
Business who have several bank accounts, petty cash, and cash on hand, would maintain a ledger account for each type of cash. 15. When the voucher system is used, the amount due on each voucher...

Answered: 1 week ago

Question

★★★★★
The current yield curve for default - free zero - coupon bonds is as follows: \ table [ [ \ table [ [ Maturity ] , [ ( Years ) ] ] , YTM ( % ) ] , [ 1 , 1 0 %

Answered: 1 week ago

Question

★★★★★
What valuable insights can businesses gain from social media analytics? Question 18Answer a. Data on audience demographics and engagement metrics b. Performance measurement of salesman c. Reframing...

Answered: 1 week ago

Question

★★★★★
If feedforward controls are the most proactive, then why do organizations need or use feedback controls? Explain and defend your answer.

Answered: 1 week ago

Question

★★★★★
The slotted arm OA rotates about a horizontal axis through point O. The 0.27-kg slider P moves with negligible friction in the slot and is controlled by the inextensible cable BP. For the instant...

Answered: 1 week ago

Question

★★★★★
Canadian Auditing Standard (CAS) 315 provide guidance on improving the quality of auditing by requiring auditors to gain a deeper understanding of their clients\' businesses and the risks that could...

Answered: 1 week ago

Question

★★★★★
Alex appears upset and challenges the low ratings. The conversation does not go well as a result. Alex later says to Amy "my financial numbers are great" and "I make a lot of money for this company."...

Answered: 1 week ago

Previous Question Next Question