maricelajacinto1931 maricelajacinto1931
  • 02-01-2021
  • Business
contestada

What constant-growth rate in dividends is expected for a stock valued at $32.40 if next year's dividend is forecast at $2.20 and the appropriate discount rate is 13.6%

Respuesta :

topeadeniran2 topeadeniran2
  • 03-01-2021

Answer: 6.81%

Explanation:

To calculate the growth rate, we'll use the formula:

Price = Expected Dividend / Discount - Growth rate

32.40 = 2.20 / 13.60% - Growth rate

13.6% - Growth rate = 2.20/32.40

Growth rate = 13.60% - 6.79%

Growth rate = 6.81%

Answer Link

Otras preguntas

pls tell this answers ​
I can not get number 2 right at all. Fill in the blank with the verb estar + word
Damek has five number cards lying on the table. There are two number cards with digit 1, two number cards with digit 2 and one number card with 0. How many diff
A 15-year old boy enters your clinic requesting treatment for scalds received on his hand while emptying the dishwasher at his place of employment. Although his
A cup of hot water loses 265 cal of energy to its surroundings. How many joules of energy is this? [?] joules
63, 58, 57, 71, 54, 60 Calculate the coefficient of variation for the following data
The circuit is working, and all three bulbs are lit. If a switch at A is opened, what will happen to the circuit? • A. All three bulbs will stay lit B. All thre
Explain the concept separation of powers
two resistors 6 ohm and 3 ohm are connected in parallel and its connected with a cell of EMF 6 volt find the current through each resistors​
1 If the population of a town increases by 280 people per year, then the growth is LINEAR (or constant). If the population in 2022 is 120,500, then what will th