Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. abc co. just paid a 55 dividend. dividends are exp

ABC Co. just paid a 55 dividend. Dividends are expected to grow at a rate...

70.2K

Verified Solution

Question

Finance

image
ABC Co. just paid a 55 dividend. Dividends are expected to grow at a rate of 10 percent for the next 4 years, and then the growth rate will stabilize at 5% for ever.XYZ Co. just paid a 55 dividend. Dividends are expected to grow at a rate of 5 percent for the next 4 years, and then the growth rate will stabilize at 10% for ever. The appropriate discount rate for both ABC and XYZ stocks is equal to 22.1f you want to buy two ABC stocks and three XYZ stocks, how much should you pay? a $116.08 b. $269.16 C$189.16 d. 513166 e None of the answer is rrect

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Design a RAM circuit such that using two 64x16b RAM chips constructs a 128x16b effective size memory...

Electrical Engineering
Q

What are some of the reasons given for the decline of golf as a sport in...

General Management
Q

What are genetic mutations and how can they impact an individual s health and the...

Biology
Q

A semi elliptical window is 44 inches wide and 15 inches tall Determine the height...

Geometry
Q

The mayor of Pottsville NC is worried about the amount of graffiti that is appearing...

Basic Math
Q

Ann invested 12 000 in two bank accounts One of the accounts pays 6 annual...

Basic Math
Q

Describe the function f(x) = 5(1/3)^x.O It is an exponential decay function with a base...

Basic Math
Q

Oakton Furniture provided the following information relevant to its sales for December Year 1 and...

Accounting
Q

Complete the below table to calculate the trend percents for all components of comparative income...

Accounting
Q

Find the future values of the following ordinary annuities: a. FV of $800 paid each...

Accounting
Q

The little girl was passing a bookstore and saw a sale for accounting books. If...

Accounting
Q

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests...

Accounting