Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. company k's earnings and dividends per share are e

Company K's earnings and dividends per share are expected to grow indefinitely by 2% a...

80.2K

Verified Solution

Question

Finance

Company K's earnings and dividends per share are expected to grow indefinitely by 2% a year. Assume next year's dividend per share s $14 and next year's EPS is $2. The market capitalization rate is 12%. If Company K were to distribute all of its earnings, it could maintain a level dividend stream of $2 a share. How much is the market actually paying per share for growth apportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

What are especif audit objectves? explain their relashionship to the general audit objectives

Accounting
Q

PPE is effective by providing a and hazard Select one O Magic Spell O Layer...

Biology
Q

Listen Why can lines not be congruent Because they equal 0 Because they are different...

Geometry
Q

Which one of the following is the solution to the open sentence 15 x 10

Algebra
Q

0 17171717 03 O 101 O 99 repeating number as a fraction Question 10 3...

Algebra
Q

REQUIRED Use the information given below to prepare the Income Statement of Costa...

Accounting
Q

what is the depreciable units?

Accounting
Q

Data Tabie Clark Corp, a lamp manufacturer, provided the following information for the year ended...

Accounting
Q

Lorax Corporation (lessor) leased an airplane to Dorax Company (lessee) on 1/1/20 on a six-year...

Accounting
Q

How to solve 5 Incorrect Mark 0.00 out of 20.00...

Accounting
Q

3. Omemee Company had the following transactions during the year: Net Loss ($36,000) Depreciation $28,000...

Accounting
Q

URGENT ANSWER NEEDED: You work as a financial analyst at WPWilly, Inc. You are evaluating...

Finance