A company just paid a dividend of $1.20 per share at the end of the year. It is expected to grow at 12% per year for three years, after that it grows constantly at 6%. The cost of equity is 9.5%. What is the current price of stock?

Answers

Answer 1

The current price of the stock given the dividend, cost of equity and growth rates is $46.90.

What is the current stock price?

Thw two-stage dividend growth model would be used to determine the value of the stock.

First stage:

dividend in Y1 = 1.20x 1.12 = 1.344dividend in Y2 = 1.20 x 1.12^2 = 1.505dividend in Y3 = 1.20 x 1.12^3 = 1.69

Second stage:

Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059

Find the present value of these cash flows

(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90

To learn more about the two stage dividend model, please check: https://brainly.com/question/26564273


Related Questions

(ii) Express 1800 cm: 20 m in its simplest form.

HELPP

Answers

1800 cm: 20 m in its simplest form is 9cm : 10 cm

What is ratio?

Ratio says how much of one thing there is compared to another thing. Ratio compares value.

Therefore, let's make the unit the same.

0.01 m = 1 cm

20m =

length = 20 / 0.01

length = 2000 cm

Therefore, the ratio is as follows:

1800 cm : 2000 cm

Let's write it in it simplest form.

1800 / 2000 = 9 / 10

Therefore, the simplest form is 9 cm : 10 cm

learn more on ratio here: https://brainly.com/question/859009

what does 10.44 x 2.5 equal?

Answers

It is equal to 26 if you didn’t understand you can ask more questions and I’ll help

Answer:

26.1

Step-by-step explanation:

Through simple multiplication, the answer of 10.44 * 2.5 is 26.1

10.44

x   2.5

----------

26.1        

A 10" x 10" sheet of paper is cut diagonally into two congruent right isoscele
triangles. What is the area of each triangle?

Answers

Answer:

20

Step-by-step explanation:

.

please help !
what is the probability of the complement of event A ?

Answers

Answer:

[tex]P(A < 84)=\frac{4}{7}[/tex]

Step-by-step explanation:

[tex]Total\ numbers:\ 7\\Numbers\ less\ than\ 84:\ 4\\\\P(A < 84)=\frac{4}{7}[/tex]

Pls help me solve this

Answers

30 red, 45 brown, 51 Orange, 39 yellow.
You need to add together the 4 numbers in the chart 10+15+17+13=55 then you do 10/55=0.1818... then times by 165 and do this for the other numbers as well.

please just answer don’t explain

Answers

Answer:

13 C 14 D 15 A 16 B

Step-by-step explanation:

Sorry thats all i know hope you found this helpful

The _____ between two points is the length of the line segment joining the points.
A. linear pair
B. angle
C. distance
D. midpoint
E. bisector

Answers

It would be c. Distance

PLSSS HELP IF YOU TURLY KNOW THISS

Answers

Answer:

See below.

Step-by-step explanation:

The answer would be 2 3/4.

The third tick represents 3/4, and this is between 2 and 3.

-hope it helps

Answer:

My guess is 2 3/4

Step-by-step explanation:

Sorry if i'm wrong, if im right can i have brainliest? So explanation is that the plotted point on the number line is c so that will make the numerator is id.k the difference between them the top of the number would be three because c is ploted on c and id.k how to get 4.

Simon does some shopping on the internet. He buys 4 CDs at $8.63 each. How much do the CDs cost altogether?

Answers

Answer:

34.52

Step-by-step explanation:

Multiplication plus may i have branlies t

Answer:

the total would be 34.52

Step-by-step explanation:

If we have 4 Cd's that cost 8.63 a piece, all we would need to do is multiply 8.63 by 4, or just add 8.63 4 times.

hope this helps, please rate and mark as brainlest.

Select the best estimate of the product of 91 x 58 = ____

Answers

5,278 hope this helps good luck!

Benjamin has 3 dimes and 4 nickels. What percent of a dollar does he have?

Answers

Answer:

50%

Step-by-step explanation:

Hope this helped

Maybe mark brainiest

Dime = 10 cents

Nickel = 5 cents

Total value of coins = 3(10) + 4(5) = 30 + 20 = 50

To find the percent, first create a fraction. The fraction will be the amount of money that Benjamin has over the total (one dollar).

50 / 100 = 5 / 10 = 0.5

0.5 x 100 = 50

50%

Answer: 50% of a dollar

Hope this helps!

Granny is 56 years old, and her granddaughter is 14. In how many years from now will the grandma be twice as old as the granddaughter?

a) 28
b) 23
c) 10
d) 25

HELPP​

Answers

Set up the problem as an equation where X is years: 14+X = (56+X)/2 Solve for X 14+X = 28 + 0.5*(X) subtract 14 from both sides: X = 14 + 0.5*(X) subtract 0.5*(X) from both sides: 0.5*(X) = 14 Solve for X by dividing both sides by 0.5: X = 28

So the answer is a) 28

(4x - 6)
(x+6y)”
Solve for y

Answers

Hey there!


(4x - 6)(x + 6y)

= (4x - 6)(1x + 6y)

= 4x(1x) + 4x(6y) - 6(1x) - 6(6y)

= 4x^2 + 24xy - 6x - 36y


Therefore, your answer is:

4x^2 + 24xy - 6x - 36y


Good luck on your assignment & enjoy your day!


~Amphitrite1040:)

A triangle has sides that measure 3 cm, 4 cm, and 5 cm. What type of triangle is it?

help pls

Answers

Answer:

it is A Scalene Triangle

Leila received 5/7 of 49 votes for the class president. How many votes did she receive?

Answers

Answer:

71.428571%

Step-by-step explanation:

You divide 5 by 7

please help I'm trying to write this in scientific notation
will give brainliest

Answers

Answer:

8.0 * 10^4

Step-by-step explanation:

Move the decimal so there is one non-zero digit to the left of the decimal point. The number of decimal places you move will be the exponent on the 10. If the decimal is being moved to the right, the exponent will be negative. If the decimal is being moved to the left, the exponent will be positive.

Answer:

8.0 x 10 4

Step-by-step explanation:

This is right

Please answer 27-40, In simplified form. Thanks. No links

Answers

Answer:

-13

Step-by-step explanation:

solve each system.
(x-1)^2 - (x+2)^2 = 9y
(y-3)^2 - (y+2)^2 = 5x

Answers

Answer:

Step-by-step explanation:

y=−2x + 1 over 3

x intercept (1,0)

y-intercept(s): (0,1/2)


hope this helps, you didnt give an  exact thing to solve about them.

1st is x= - 1/2
2nd is x= -2y+1

Select the correct answer.
Which number is an irrational number?

A.

B.

C.

D.

Answers

Answer:

you do not have any numbers, only letters so I cannot answer your question. sorry...

Step-by-step explanation:

Select the correct answer.

Which number is an irrational number?

A.

B.

C.

D.

SOMEONE HELP!!!!!!!!!!!!!!!!!1

Answers

Answer:

5

Step-by-step explanation:

Determina el grado de y =3r⁵ + 8r³

5

Find a value for Y and give a reason for your answer

Answers

Step-by-step explanation:

inscribed angles subtended by the same arc are equal.

the central angle of a circle is twice any inscribed angle subtended by the same arc.

the first statement tells us that the 53° angle as well as y stay the same size no matter where on their arcs (between the 2 points connected to O) they would be. so, we don't need to bother with any line lengths.

the 2nd statement tells us that x = 2×53 = 106°. the 53° and x angles refer to the short arc on the right of the 2 points connected to O.

and y and x refer to the larger arc on the left of the 2 line connected to O. that means according to the second statement : 360-x (the big angle around O) = 2y

so,

360 - 106 = 2y

254 = 2y

y = 127°

5547x94
what is the answer

Answers

Answer:

521418

Step-by-step explanation:

The answer should be 521418

Find the value of x. Round to the nearest degree. Explain step by step

Answers

You have tu use

a2+b2+c2

Please answer these questions:

a) What are the 2 features that make this shape a square?
b) A quadrilateral has no pairs of parallel sides. What 2 shapes could this be?
c) A triangle has one pair of equal sides and one pair of equal angles. What is it called?

Answers

Answer:

A. 1. The sum of all interior angles is equal.

    2. All sides are equal in length.

B. Trapezium.

C. isosceles triangle.

How many square feet of outdoor carpet will we need for this hole?

Answers

Answer:

50 [ft²].

Step-by-step explanation:

1) if the hole is shaded with green colour, then its area

2) can be calculated as sum of three small parts:

2*11+2*7+2*7=2*25=50 [ft²].

What is 164 divided by 5.40

Answers

Answer:

30.37

Step-by-step explanation:

164÷5.40164×100/54016400/540give 30.37

Answer:

[tex]164 \div 5.40 ={\ 30.3704{}}[/tex]

The answer is 30.3704

Maggie wants 20 cookies equally in boxes. Each box holds 5 cookies how many does she need?

Answers

Answer:

4 boxes

Step-by-step explanation:

If she has 4 boxes that hold 5 cookies each, that will total 20 cookies.

4×5=20

20÷5=4

4 cookies 5 boxes 4 times 5 equals 20

-
nd
According to the line of best fit, about how many words
will Jean have typed when she completes 60 minutes of
typing?
0 2,500
o 2,750
3,000
O
3,250

Answers

Answer:

C. 3000

Step-by-step explanation:

i took the quiz!

also 60 and 3000 line up

Answer:

C 3,000

Step-by-step explanation: It's right on Edge

THIS IS VERY NEEDED! I AM VERY CONFUSED AND I HAVE A TEST PLEASE HELP ME! I WILL GIVE BRAINLIEST AND 20 POINTS IS OFFERED!

Answers

Answer:

the answer is -6.8°

Step-by-step explanation:

-36°+-25°+12°+-3°+18°/5°

-34°÷5°=-6.8°

Make as Braniliest!

maths grade 8 solution

Answers

Answer:

hope it helps

also try to find out what 5power 10 is because I have no calculator with me

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