Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. sunnytax publinhing payn out all its eamings and h

Sunnytax Publinhing payn out all its eamings and has a share price of $3500. In...

50.1K

Verified Solution

Question

Finance

image
Sunnytax Publinhing payn out all its eamings and has a share price of $3500. In ordor to expand, Sunnylax Publshing decides to cut its dividend trom 53 00 to $2.00 per share and reinvest the retained funds. Once the funds are reitvested, they are expected to grow at a tate of 13%. If the reinvestment does not affect Sunnytax's equily cost of capital, what is the expected thare price as a consequence of this decision? A. sNo 05 b. $46.71 c. 537.37 D. $32.70

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

a. Write the chemical reactions whose equilibrium constants are Kb and Ka for imidazole and imidazole...

Chemistry
Q

What transport mechanism allows water to cross the apical surface of an absorptive cell in the...

Medical Sciences
Q

Draw a Punnett square for a monohybrid cross between A) two homozygous parents (one dominant and...

Biology
Q

Incredible Sound is a wholesale business that sells musical instruments.Transactions involving sales and cash receipts for...

Accounting
Q

Briefly explain what happens to the outer membrane and peptidoglycan of gram negative cells after...

Biology
Q

Two coherent sources of sound S and S2 produce sound waves of the same wavelength...

Physics
Q

Consider sec(-(2 + 3x)) = ?2.The principle solution is x =We now determine all solutions...

Algebra
Q

The cost of producing x grapefruits is given by C(x)= 450+ 2.4x. Determine the average...

Algebra
Q

For Mortenson Company, the following information is available: In Mortenson's multiple-step income statement,...

Accounting
Q

weston campany manufactures a product that is avaliable in both deluxe and regular delxue dm=50,...

Accounting
Q

Epsilon Co. can produce a unit of product for the following costs Direct material Direct...

Accounting
Q

1- Assume that the risk-free rate increases but the market risk premium remains constant. What...

Finance