Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. cx enterprises has the following expected dividend

CX Enterprises has the following expected dividends: $1.04 in one year, $1.15 in two years,...

80.2K

Verified Solution

Question

Finance

image
CX Enterprises has the following expected dividends: $1.04 in one year, $1.15 in two years, and $1.29 in three years. After that, its dividends are expected to grow at 4.5% per year forever (so that year 4's dividend will be 4.5% more than $1.29 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $ . (Round to the nearest cent.)

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

Which of the following is true of the Iroquois O They were cannibals They were...

Biology
Q

1. Given parametric equations below, find the values of t where the the parametric curve has...

Basic Math
Q

What are simple microscopes O Those that are composed of 2 lenses Those that are...

Biology
Q

Evaluate if possible the six trigonometric functions at the real number If an answer is...

Calculus
Q

Joshua and Ellen are married and file a joint return. Three individuals qualify as their...

Accounting
Q

Parker tooling ltd is considering lengthening its credit period from 30 to 60 days. The...

Accounting
Q

Swifty Manufacturing Company sold toys listed at $450 per unit to Marigold, Inc. for $383,...

Accounting
Q

Wilson Inc. recently reported $18.20 million of sales, $12.45 million of operating costs other than...

Accounting
Q

A companys flexible budget for 24,000 units of production showed sales, $93,600; variable costs, $31,200;...

Accounting
Q

What information is commonly provided by a job-seeker on the application for employment form? a....

Accounting
Q

At the beginning of the current period, Crane Company estimated that annual manufacturing overhead costs...

Accounting
Q

please show all work and formulas Homemade leverage. Terry Industries has...

Finance