Johnatron953 Johnatron953

01-07-2021
Business

contestada

Suppose cyclone industrial inc will pay a dividend of 1.65 per share next year. The require return on the stock is 8% and its dividends will grow by 2% per year indefinitely. What is the stock price today?

Respuesta :

ewomazinoade ewomazinoade

01-07-2021

Answer:

$27.50

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$1.65 / ( 0.08 - 0.02) = $27.50

Answer Link

Otras preguntas

as you may know, if you drop an object and it is affected little by air resistance, the acceleration is 9.8m/s^2. Do you think accleration down the ramp is more

which of the following is the best definition of rising action?

Why would this myth use such an unpleasant image for the creation of the world? Choose the most likely answer A. Perhaps they suffered from weak stomachs. B. P

If you wanted to quote from page 42 of a book by Jon Krakauer about an ill-fated attempt to climb Mount Everest (titled Into Thin Air) for a research paper, whi

Why was Byzantium a good place for a capital? a) There were trade routes that linked three continents b) There were already lots of great buildings there c) Byz

what are some figuartive language phrases (e.g. metaphors, similies, descriptive language etc) used to describe the pain of someone close dying need it for my s

Identify the factors that contributed to the rise in the eviction rate of low-income families, according to sociologist matthew desmond's study starting in the

Question 1- How do you think the sneak attack by the Japanese at pearl harbor, which killed nearly 3,000 Americans, impact the general public's view of the drop

What is the best definition you can infer for word “spirit” from the excerpt above

There is a rectangular prism that can fit 28 cubes with edge lengths of 1/2 inch each. What is the volume of this rectangular prism? (20 pts)