Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 6 8.57 pts abc corp. issued the dividend

Question 6 8.57 pts ABC Corp. issued the dividend of $4.72 this year. Assume this...

60.1K

Verified Solution

Question

Accounting

image
Question 6 8.57 pts ABC Corp. issued the dividend of $4.72 this year. Assume this dividend will grow at the annual percentage of 25% each year for next 3 years, and that it will then grow by 4.8% each year in perpetuity afterwards. Assuming the discount rate of 12.7%, what is the market value of ABC Corp's shares under the Dividend Growth Model? $92 O $122 O $115 O $100 $103

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

The following is market information: Current spot rate of pound = $1.45 90-day forward rate of pound = $1.46 3-month deposit rate...

Finance
Q

Suggest the most suitable piling technique used for sandy soil encountered at the worksite. Explain the...

Civil Engineering
Q

What are the procedures and purpose of Open Circuit Test and Short Circuit test with the...

Electrical Engineering
Q

As you read watch for details about Generation Z and how they are using their...

Biology
Q

All changes save 7 A block slides from rest down the 26 0 m length...

Physics
Q

34 The given figure shows a spherical Gaussian surface and a charge distribution When calculating...

Physics
Q

Solve the triangle ABC, if the triangle exists.B=3518' a=38.6 b=30.8A. There are 2 possible solutions...

Basic Math
Q

Evaluate the integral using integration by parts fxsin x dx x sin x dx

Calculus
Q

nternal Rate of Return Method The internal rate of return method is used by Leach...

Accounting
Q

Exercise 10-13 Pharoah Company issued S450,000 of 9%, 20-year bonds on January 1,...

Accounting
Q

2. State two specific functions or jobs that should be segregated in the sales processing...

Accounting
Q

please answer asap! ...

Finance