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geminigirl077
28.02.2020 •
Business
The Herjavec Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's stock.What is the current price?What will be the price in three years?
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Ответ:
Current price : $24.05
Price in 3 years : $27.05
Explanation:
The Current stock price of Herjavec Co will be determined by the formula given below;
Po = [Do (1 + g) ] / (r - g)
Po = Current price
Do = Current dividend
r = Rate of return
g = growth of dividend
Po = ($1.85 * 1.04) / (0.12 - 0.04)
Po = $1.924 / 0.08
Po = $24.05.
The stock price of Herjavec Co after 3 years will be determined by the formula given below;
P3 = Do (1 + g)^4 / (r - g)
P3 = [$1.85 * (1.04)^4] / (0.12 - 0.04)
P3 = $27.05
Ответ:
CHARGE RENT:
If you own a house, hotel, mobile home, or land that is unused, charge people rent to use your facility/property.
BUSINESS OPERATION:
Why not start a car wash, convenience store, or a retail store? That's extra income that you have access to!
FLIP HOUSES:
You can easily flip a house by buying any old/run-down house and upgrading it. A profit is almost guaranteed.