Answered step by step
Verified Expert Solution
Question
1 Approved Answer
not sure if question one is right or not, and it would be great help for number 2. also i have a financial calculator HUMBER
not sure if question one is right or not, and it would be great help for number 2. also i have a financial calculator HUMBER COLLEGE THE BUSINESS SCHOOL FIN 2500 CLASS ACTIVITY CH 10 GRADE VALUE 2% Q1. KB Adventures will pay an year, the company paid a dividend policy. What wil will pay an annual dividend of $3.15 a share on their common stock next week. Last any paid a dividend of $3.00 a share. The company adheres to a constant rate of growth y. What will one share of this common stock be worth ten years from now if the applicable discount rate is 12.5 percent? A = Plote/100) 1+9R- Price after 10 years = 3,15= 3.00lit R1100) g = 3.15/3 = 1.ost current price = DIIRRG 5.15 (0.125-00105) 36,06( Lolos) = (yo.030) Q2. Tom's Health Clinic just paid a $4.40 annual dividend. The company has a policy of increasing the dividend by 4 percent annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another two years. If you require a 14 percent rate of return, how much will you be willing to pay for the 100 shares when you can afford to make this investment? 10 = 36.06
not sure if question one is right or not, and it would be great help for number 2. also i have a financial calculator
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started