Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. today, dupont paid a dividend of $0.50. for the ne

Today, DuPont paid a dividend of $0.50. For the next 4 years, the company's dividend...

90.2K

Verified Solution

Question

Accounting

image

Today, DuPont paid a dividend of $0.50. For the next 4 years, the company's dividend is expected to grow at 10% p.a. compound annually and then revert to a long-term growth rate of 4% p.a. forever after that. How much should an investor pay for a share of DuPont today if an appropriate rate of return is 12% p.a. compounded annually? Any intermediate steps should be rounded to 4 or more decimal places. Round your final answer in dollars to 2 decimal places and exclude the dollar sign (\$) or comma. For example, $10,784.6518 should be input as 10784.65

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

9) Use a probability tree: 85% of Americans have dental insurance. Of those that havedental...

Algebra
Q

On average, a firm collects checks totaling $250,000 per day. It takes the firm approximately 4...

Finance
Q

Q1- If you know that the birth weights of male babies have a standard deviation of 1.33...

Statistics
Q

At temperature T a compound AB2 g dissociates according to the reaction 2AB 2 g...

Physics
Q

Evaluate the following integral 2 sipx IIT siny dz dx dy 000 x 2 sipx...

Calculus
Q

Allen bought 1,350 shares of stock for $12 per share. If he sold all his...

Algebra
Q

10 9 X g x 4 3 J 4 10 2 A 7 6 5...

Algebra
Q

5. Process Cost 25 points Karim-Savage Petroleum Inc. produces petroleum as part of a continuous...

Accounting
Q

Sebring Company reports depreciation expense of $58,000 for Year 2. Also, equipment costing $194,000 was...

Accounting
Q

Our data provider reported that Ralph Lauren received a total value of $16,500,004 in the...

Accounting
Q

Suppose that at time 0 a bank is considering buying an illiquid 2-year zero-coupon bond...

Finance
Q

De the role that companie Standard & Poor's, Dun & Bradstreet and Moodys play in...

Finance