Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

The risk-free rate is 2.12% and the market risk premium is 6.94%. A stock with a of 0.95 just paid a dividend of $1.82. The

The risk-free rate is 2.12% and the market risk premium is 6.94%. A stock with a of 0.95 just paid a dividend of $1.82. The dividend is expected to grow at 23.31% for three years and then grow at 4.28% forever. What is the value of the stock? Submit 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

Students also viewed these Finance questions

Question

What is the future of psychology likely to hold? 3-1 What is the scientifi c method?

Answered: 1 week ago

Question

★★★★★

SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. The following financial information (in millions) was taken from the companys 2010 annual...

Answered: 1 week ago

Question

★★★★★

Exercise 5-12 Analysis of inventory errors LO A2 Vibrant Company had $1,010,000 of sales in each of Year 1 Year 2. and Year 3, and it purchased merchandise costing $555,000 in each of those years. It...

Answered: 1 week ago

Question

★★★★★

Florek Inc. produces and sells a single product. The company has provided its contribution format income statement for March. Sales (7,100 units) $ 284,000 Variable expenses 184,600 Contribution...

Answered: 1 week ago

Question

★★★★★

Ingrid Shalansky, an audit senior, was given the task of auditing the investment section of Crabapple Ltd.Examining the investments, she found the following transactions had occurred during the year;...

Answered: 1 week ago

Question

★★★★★

HRM In Context BUS7B48 An evaluation of the external factors affecting HRM Discuss the strengths and limitations of the Resource Based View as compared to the Universal (Best Practice) and Contingent...

Answered: 1 week ago

Question

★★★★★

Making capital investment decisions: Project 1 (15 marks) The directors of XYZ Ltd. are considering whether to invest in two separate projects: one is small while the other is large. The company has...

Answered: 1 week ago

Question

★★★★★

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,104...

Answered: 1 week ago

Question

★★★★★

Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $375,000. Peanut uses the...

Answered: 1 week ago

Previous Question Next Question