FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 23 A firm pays an annual dividend of $1.15 today. The risk-free rate (RF) is 2.5%, and the risk premium for the stock is

image text in transcribed
QUESTION 23 A firm pays an annual dividend of $1.15 today. The risk-free rate (RF) is 2.5%, and the risk premium for the stock is 7%. What is the value of the stock, if the dividend is expected to remain constant? A. About $25.00 B. About $16.03. C. About $12.11. D. Not enough information to solve this problem. E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Personal Finance

Personal Finance

Authors: Jack Kapoor

13th Edition

1260799735, 9781260799736

More Books

Students also viewed these Finance questions

Question

★★★★★
A research psychologist is planning an experiment to determine whether the use of imagery-picturing a word in your mind-affects people's ability to memorize. He wants to use two groups of subjects: a...

Answered: 1 week ago

Question

★★★★★
You measure the dependent variable of participants relaxation level as a function of whether they meditate before being tested, and whether they were shown a film containing a low, medium, or high...

Answered: 1 week ago

Question

★★★★★
6.55 Calculate the area under the standard normal curve between these values: a. z=-2.0 and z=2.00 b. z=-2.3 and z=-1.5

Answered: 1 week ago

Question

★★★★★
Dover Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Dover varies widely; pharmacists can spend between five...

Answered: 1 week ago

Question

★★★★★
Plz help 1) 2) 3) Clooney Corp. establishes a petty cash fund for $200 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund...

Answered: 1 week ago

Question

★★★★★
Collect and present yearly data for imports of vehicles to Vietnam and exports of iron and steel of Vietnam for the year 2018-2020. Present the average for the time frame of imports and exports....

Answered: 1 week ago

Question

★★★★★
14. If the potential at any point in two dimensional pla is given as V(x)=4x +4. Find the electric field an potential at (2, 0).

Answered: 1 week ago

Question

★★★★★
15. Four point charges of magnitude 2 C, -2, -3 and 6 C are kept at the four vertices of a square ABCD, with side 2 m. Find out the potential at the centre of the square.

Answered: 1 week ago

Question

★★★★★
16. At what point of the line joining the charges 3 nC and -2 nC, kept 15 cm apart, the potential is zero? Consider the potential at infinity to be zero. Hint: Accordin

Answered: 1 week ago

Question

★★★★★
17. Find out the work done in carrying a small charge of -2nC from a point (0, 0, 0.03 m) to (0, 0.04 m, 0) through (0,0.06m, 0.05 m). Consider the charge 8103 C is placed at origin. Hint: Potenti

Answered: 1 week ago

Question

★★★★★
18. Surface charge density of a thin planar sheet, = 106 C/m. Two equipotential surfaces, at the potential difference 10 V all drawn due to the given sheet. Calculate the distance of the...

Answered: 1 week ago

Question

★★★★★
The tools are structured and for improving the individuals communication skills.

Answered: 1 week ago

Question

★★★★★
Always show respect for the other person or persons.

Answered: 1 week ago

Question

★★★★★
Self-awareness is linked to the businesss results.

Answered: 1 week ago

Previous Question Next Question