Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company has announced that it will pay a dividen

A company has announced that it will pay a dividend of $1.41 per share next...

50.1K

Verified Solution

Question

Finance

A company has announced that it will pay a dividend of $1.41 per share next year, and thereafter you expect the dividend to grow at a constant rate of 4.5% per year indefinitely into the future. If the required rate of return is 10.8% per year, what would be a fair price for the stock today? (Answer to the nearest penny.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Link Company acquired Tuna Inc. on January 1, 2017. On January 1, 2017 all of Tuna's...

Accounting
Q

Mortality is lowest during the young stages fortype IIItype IVtype IItype I survivorship curve

Biology
Q

Find the slope of the line that passes through (-6, -3) and (-5, 3). Write...

Basic Math
Q

Simplify the expression.z+zx + 3z + 3x / z+ 3

Basic Math
Q

You are taking a quiz that has 9 multiple choice questions If each question has...

Statistics
Q

2 Use the graphs of f x and g x to construct the graph of...

Calculus
Q

Muncercruan 1464+09 11+10cco 44+1+cos 12710200 Mtane criver 1+sen400 the 74sing st assiteo s4tlingst. 52.719202 Munine...

Accounting
Q

Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet...

Accounting
Q

A company reports the following information for its direct labor. AH= Actual Hours SH= Standard...

Accounting
Q

Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit...

Accounting
Q

what is the amount of the annual limitation placed on the deductibility of investment interest...

Accounting
Q

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance...

Finance