Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

The risk-free rate is 2.93% and the market risk premium is 6.25%. A stock with a of 1.22 just paid a dividend of $2.34. The

The risk-free rate is 2.93% and the market risk premium is 6.25%. A stock with a of 1.22 just paid a dividend of $2.34. The dividend is expected to grow at 20.65% for three years and then grow at 4.89% forever. What is the value of the stock?

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

A Study In Public Finance

Authors: A. C. Pigou

1st Edition

1443722766, 978-1443722766

More Books

Students also viewed these Finance questions

Question

★★★★★

The activation energy for the decomposition of HI(g) to H2(g) and I2(g) is 186 kJ/ mol. The rate constant at 555 K is 3.52 10-7 Lmol-1s-1. What is the rate constant at 645 K?

Answered: 1 week ago

Question

★★★★★

Your task on this assignment is to evaluate the long-run and short-run behavior of an industry or market-level variable and compare it with the associated macroeconomic variable. You may choose a...

Answered: 1 week ago

Question

★★★★★

10.113 Two Different Entrees To compare the demand for two different entrees, the manager of a cafeteria recorded the number of purchases of each entree on seven consecutive days. The data are shown...

Answered: 1 week ago

Question

★★★★★

Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation-equipment on its balance sheet. Does this mean (a) That the replacement cost of the equipment is...

Answered: 1 week ago

Question

★★★★★

Problem 3 Java Programming Reimplement the echo server and client using TCP. The TCP server should support multiple client connections. Each connection should be handled by a thread. After sending a...

Answered: 1 week ago

Question

★★★★★

YUESLIOn 1 ( 1 U pUnILS ) The Extra Surplus Company's Balance Sheet for December 3 1 , 2 0 2 0 and the IncomeStatement for 2 0 2 1 are shown below.Extra Surplus CompanyBalance SheetDecember 3 1 , 2 0...

Answered: 1 week ago

Question

★★★★★

This is a circuit design i made in TinkerCAD. I am trying to use the green LED with variable brightness as a function of the Ultrasonic sensor reading. The three Red LEDs are a warning indicator if...

Answered: 1 week ago

Question

★★★★★

Question 3 (10 points) Listen What is corporate personhood, and how does it relate to corporate social responsibility? Relate this to our discussion on Exxon Mobile (the largest Oil and Gas...

Answered: 1 week ago

Question

★★★★★

Problem 4. PREVIEW ONLY -- ANSWERS NOT RECORDED (2 points) Assume you are to select digits from the set {2, 3, 4, 5, 6, 7, 9} to form a number between 20 and 900. 60 (1) HOW MANY such numbers can be...

Answered: 1 week ago

Question

★★★★★

Problem 1: Consider the following Matrix A: A = [222] a) Find the Eigenvalues of A. Show all your work by hand b) Find the Eigenvectors of A. Show all your work by hand c) Normalize the Eigenvectors....

Answered: 1 week ago

Question

★★★★★

(1) You need to move an object having mass of 23 kg. In one case, you are pulling at an angle of 30. In another case, you are pushing it at the same angle. Frictional coefficient = 0.50. (a) Compute...

Answered: 1 week ago

Question

★★★★★

Describe the role of a physician assistant. Would you feel comfortable going to a physician assistant?

Answered: 1 week ago

Question

★★★★★

Why was managed care developed? Do you think managed care is a good way to provide healthcare services? Why or why not?

Answered: 1 week ago

Question

★★★★★

What is recruitment? Which is more important, internal or external? Or are both equally important? Defend your answer.

Answered: 1 week ago

Previous Question Next Question