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Suppose this morning SPB Ltd . , a solar panel and battery manufacturing company, paid a dividend of $ 2 per share. At 1 0
Suppose this morning SPB Ltd a solar panel and battery manufacturing company, paid a dividend of $ per share. At am SPB announced its latest earnings resultswhich were unexpectedly good and management seems very happy. One year ago, SPB paid for and implemented the Stealth DisposalSD project for handling its toxic waste. Only SPBs management is aware of the SD project. The project has reduced SPBs expenses related to toxic waste disposal, but there is a chance of toxic contamination of the drinking water for the nearest city. SPB management has no intention of publicly disclosing that the SD project exists. Following this morning's am quarterly earnings announcement, SPBs earnings growth prospects look very good based upon substantial cost savingsalthough investors don't know it these cost saving are due to the SD project SPBs earnings announcement has caused investors to reassess SPBs dividend growth with the new expectation that dividends will grow by each quarter. Prior to the announcement, dividends were expected to grow by each quarter. In addition, given investors' perceived risk of SPB the equity cost of capital for SPB is effective annual rate Complete parts a through f below. Question content area bottom Part a Refer to the attached figure LOADING... and assume the market is semistrongform efficient. What was the price of SPBs stock at: am The price of SPBs stock at: am was $ Round the final answer to the nearest cent. Round all intermediate values to six decimal places as needed. Part b Continue to assume the market is semistrongform efficient. What was the price of SPBs stock at: am The price of SPBs stock at: am was $enter your response here Round the final answer to the nearest cent. Round all intermediate values to six decimal places as needed.
Suppose this morning SPB Ltd a solar panel and battery manufacturing company, paid a dividend of $
per share. At am SPB announced its latest earnings resultswhich were unexpectedly good and management seems very happy. One year ago, SPB paid for and implemented the Stealth DisposalSD project for handling its toxic waste. Only SPBs management is aware of the SD project. The project has reduced SPBs expenses related to toxic waste disposal, but there is a chance of toxic contamination of the drinking water for the nearest city. SPB management has no intention of publicly disclosing that the SD project exists. Following this morning's am quarterly earnings announcement, SPBs earnings growth prospects look very good based upon substantial cost savingsalthough investors don't know it these cost saving are due to the SD project SPBs earnings announcement has caused investors to reassess SPBs dividend growth with the new expectation that dividends will grow by
each quarter. Prior to the announcement, dividends were expected to grow by
each quarter. In addition, given investors' perceived risk of SPB the equity cost of capital for SPB is
effective annual rate Complete parts a through f below.
Question content area bottom
Part
a Refer to the attached figure
LOADING...
and assume the market is semistrongform efficient. What was the price of SPBs stock at: am
The price of SPBs stock at: am was $
Round the final answer to the nearest cent. Round all intermediate values to six decimal places as needed.
Part
b Continue to assume the market is semistrongform efficient. What was the price of SPBs stock at: am
The price of SPBs stock at: am was $enter your response here
Round the final answer to the nearest cent. Round all intermediate values to six decimal places as needed.
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