Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

The risk-free rate is 4.00% and the market risk premium is 8.62%. A stock with a of 1.22 just paid a dividend of $1.29. The

The risk-free rate is 4.00% and the market risk premium is 8.62%. A stock with a of 1.22 just paid a dividend of $1.29. The dividend is expected to grow at 21.80% for three years and then grow at 4.48% 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

Recommended Textbook for

Finance And Sustainability Proceedings From The Finance And Sustainability Conference Wroclaw 2017

Authors: Agnieszka Bem, Karolina Daszy?ska-?ygad?o , Ta?ána Hajdíková, Péter Juhász

1st Edition

3319922270,3319922289

More Books

Students also viewed these Finance questions

Question

★★★★★

Outline the electron configurations of many-electron atoms in terms of their location in the periodic table.

Answered: 1 week ago

Question

★★★★★

5. ( 1 point) If you have $2,500 today and want to save it for 20 years to get $10,000. What annual interest rate should you earn to achieve this goal? N=I/Y= CPT(compute): Calculated Answer: 6. (...

Answered: 1 week ago

Question

★★★★★

If your community has festivals to celebrate identity or marches that address intolerance or oppression, learn more about them and share the information with your class. If your investigation leads...

Answered: 1 week ago

Question

★★★★★

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first...

Answered: 1 week ago

Question

★★★★★

The intrinsic value of a company's stock, also known as its fundamental value, refers to the stock's "true" value based on accurate risk and return data. The value perceived by stock market investors...

Answered: 1 week ago

Question

★★★★★

Ch14: Question 1: Company issue preferred stock 100000 share for cash $23 per share. The par value for preferred stock is $20,6%. 1) Journalize the issue of preferred stock? 2) Show the allocation of...

Answered: 1 week ago

Question

★★★★★

INDIVIDUAL TAX RETURN PROBLEM 2Required: Use the following information to complete Johnelle and Latoya Henry's 2016federal income tax return. If information is missing, use reasonable assumptions to...

Answered: 1 week ago

Question

★★★★★

During Brigade Support Area (BSA) displacement, __________ could limit "logistical blackout" as the operation continues and support is still required. a. Logistics Release Point (LRP) b. Forward...

Answered: 1 week ago

Question

★★★★★

Create a financial format and analysis. PROJECT STEPS Kamal Haman runs the San Antonio office of Cello Worldwide, a global communications company. Hes been tracking income and expenses along with...

Answered: 1 week ago

Question

★★★★★

On January 1, Year 1, Grapefruit Corporation purchased a machine for $40,500,000. Grapefruit's management expects to use the machine for 28,000 hours over the next six years. The estimated residual...

Answered: 1 week ago

Question

★★★★★

The account balances from the December 31, 2019, trial balance for Haman Accounting Services are shown below. HAMAN ACCOUNTING Trial Balance December 31, 2019 DEBIT CREDIT ACCOUNT NAME Cash 7,600...

Answered: 1 week ago

Previous Question Next Question