Question
Please help me step by step to get the correct answers 1. A firm is paying dividends of $1.87 at t = 0 (this is
Please help me step by step to get the correct answers
1.
A firm is paying dividends of $1.87 at t = 0 (this is today!!! Not next year!) which will then grow at the same rate of 5.6% forever. What should be the price of this firms stock if you think you should be getting a rate of return of 7.4% for holding the stock? | |||
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2.
Calculate the incremental cash flow (to two-place accuracy) for a project for a year when incremental sales is $11319, the incremental operating costs (excluding depreciation) is $3303, and the incremental depreciation is $2186. The tax rate for this firm is 25% | |||
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