Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 14, 2024

The risk-free rate is 1.72% and the market risk premium is 6.21%. A stock with a of 1.79 just paid a dividend of $2.74. The

The risk-free rate is 1.72% and the market risk premium is 6.21%. A stock with a of 1.79 just paid a dividend of $2.74. The dividend is expected to grow at 21.14% for three years and then grow at 4.78% forever. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.

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

Recommended Textbook for

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

6th Edition

125991965X, 978-1259919657

More Books

Students also viewed these Finance questions

Question

★★★★★

Product J19 is produced for $11 per gallon. Product J19 can be sold without additional processing for $18 per gallon, or processed further into Product R33 at an additional cost of $7 per gallon....

Answered: 1 week ago

Question

★★★★★

Consider a ladder with a painter climbing up it (Fig. 9-61). If the mass of the ladder is 12.0 kg, the mass of the painter is 55.0 kg, and the ladder begins to slip at its base when her feet are 70%...

Answered: 1 week ago

Question

★★★★★

=+35. HDI diagnostics. In Chapter 17, Exercise 36 we found a model for HDI (the UNs Human Development Index) from 7 socio-economic variables for 96 countries. Using software that provides regression...

Answered: 1 week ago

Question

★★★★★

The year-end financial statements of Rattlers Tax Services are provided below. Required: 1. Record year-end closing entries. 2. Prepare a post-closing trial balance. RATTLERS TAX SERVICES Statement...

Answered: 1 week ago

Question

★★★★★

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzerias owner has determined that the shop...

Answered: 1 week ago

Question

★★★★★

Using the following information for a periodic inventory system, what is the amount of net income? Purchases $27,161 Selling expense $884 Inventory, September 1 7,560 Inventory, September 30 9,308...

Answered: 1 week ago

Question

★★★★★

The answers should identify the capabilities,understandings and knowledge you have gained during the course and how your learning has affected your abilities in a group. 3. discuss the pros and cons...

Answered: 1 week ago

Question

★★★★★

On November 14, US department store chain Macy's alerted customers of a security breach discovered in October on its website that led to the compromise of payment card details and customer...

Answered: 1 week ago

Question

★★★★★

Recommend one strategy at each level - Corporate Level, Business Level and Functional Level for Airbnb arise from pandemic

Answered: 1 week ago

Question

★★★★★

What is the purpose of code of conduct will it impact at the goal decisions how will it be used by the organization and it\'s associates

Answered: 1 week ago

Question

★★★★★

Is there a common thread in the two situations of personal gain? What is different about the Gates scenario and those of the Birmingham officials?

Answered: 1 week ago

Question

★★★★★

2. To get some practice in identifying communication styles, watch two or three television shows and attempt to identify the style of individuals portrayed on the screen. To fully develop your skills...

Answered: 1 week ago

Question

★★★★★

2. Evaluate how the original problem could have been intercepted before it became a health care crisis.

Answered: 1 week ago

Question

★★★★★

3. Lets assume that you have been hired to study the series of mix-ups that involved personnel employed by Automatic Elevator, Cardinal Health, and Duke Hospitals; propose your recommendation that...

Answered: 1 week ago

Previous Question Next Question