Question
Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 4% per year. A. If
Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 4% per year.
A. If r=16% and DIV1 = $3, what is the value of a share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
| Value of a share |
|
B. What price do you forecast for the stock next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
| Stock price |
|
C. What rate of return should you expect if you buy the stock today and sell it in one year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| Expected rate of return |
|
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Public Finance And National Accounts In The European Context Financial And Monetary Policy Studies
Authors: Joaquim Miranda Sarmento
2018th Edition
3030051730, 978-3030051730
