Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock will pay a dividend of $7.07 in one year.

A stock will pay a dividend of $7.07 in one year. If your discount rate...

50.1K

Verified Solution

Question

Finance

A stock will pay a dividend of $7.07 in one year. If your discount rate is 0.11 per year, and the growth rate in dividends is a constant 0.02 per year, what is current stock price? Note: the discount rate and growth rate are in decimals, so 0.20 would be 20%. (Round your 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

Find the six nonisomorphic trees on 6 vertices, and for each compute the number of distinct...

Advance Math
Q

A conducting rectangular loop of mass, M, resistance R, and dimensions w x l falls from...

Physics
Q

What does the following sentence from the transcript "Public meeting on the High Cost of...

Biology
Q

The figure represents a solid uniform sphere of mass M and radius R A spherical...

Physics
Q

6 12 yd 8 yd 5 yd 7 9 0 7 in 11 yd 10...

Geometry
Q

Solve the differential equation dy dx 11 1 2 y cos y

Calculus
Q

Below is the graph of f x x 6x 9 with a restricted domain Which...

Algebra
Q

The wages of factory maintenance personnel would usually be considered to be: Indirect labour...

Accounting
Q

a) prepare the at acquisition date pro-forma journal entries for the 2021 group financial statements....

Accounting
Q

In activity-based costing, low-volume complex products are usually undercosted and high volume simpler products are...

Accounting
Q

Question 3 of 20. The first change you will notice on the 2020 Forms 1040...

Accounting
Q

Collateral is sometimes pledged as security for bonds. Which of the following carries no specific...

Accounting