![bigjoebob22](/avatars/32142.jpg)
bigjoebob22
22.04.2020 •
Business
Thomas brothers is expected to pay a$1.00 per share dividend at the end of the year. Dividend growth rate : 9% a year. The required rate of return on the stock is 17%. What is the stock’s current value per share?
Solved
Show answers
More tips
- S Style and Beauty How to Braid Hair with a Plaiting Machine: Tips and Recommendations...
- B Business and Finance How to Create a Business Plan? Your Ultimate Guide...
- F Food and Cooking Deflope: What is it and how does it work?...
- F Food and Cooking Why Doesn t the Confirmation Link Come to Email?...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- S Science and Technology Discovering the Anatomy of an LCD TV Screen...
- H Health and Medicine What You Need to Know About Nasal Congestion in Infants: Causes, Symptoms, and Treatment...
- A Auto and Moto What is the Average Lifespan of an Engine in a Car?...
- C Computers and Internet Make Money Online: Secrets and Essential Ways...
- A Auto and Moto How Can Parking Sensors Help Drivers?...
Answers on questions: Business
- B Business How much liability coverage does the average small business need? a)$100,000 to $200,000 b) $500,000 to $1 million c) $2 million to $3 million d) $3 million to $4 million...
- B Business Agoal that you want to achieve within the next year is what type of goal...
- B Business The following aging information pertains to Jacobsen Co. s accounts receivable at December 31, 2021: Days Outstanding Amount Estimated % Uncollectible 0-30 $ 423,000...
- B Business Why are there an increasing number of mergers with companies in different industries? give some examples. What industry do you think will be the next for global consolidation?....
- P Physics You have two contentious friends, Chris and Pat, and you’ve quickly discovered that they need you to resolve arguments they have about physics concepts. Chris says, The...
- S Social Studies When Claire graduated from high school she found a job doing office work for $25K per year. Over the next six years she went to college at night and earned a degree in...
- M Mathematics The table gives the temperature (in °F) in five cities at 6 a.m. on the same day. Use the table to answer the questions. City Temperature (°F) Chicago -3 Springfield...
- M Mathematics PLZ H URY UP! Petri did the following problem but got the wrong answer. She needs to correct her mistake and turn the problem back in. (5-3) 2=3.7+1 25-9-3.7+1 25 -3.7+1...
- M Mathematics Use an appropriate technique to develop a forecast for the expected number of passengers for the next three weeks. Explain your rationale as well as provide your forecasts....
- P Physics 1.1.2 Quiz: What is Science? Question 6 of 10 Which situation is most likely to lead to improving a scientific theory? O A. Performing experiments that have never been...
Ответ:
The correct answer is $12.5.
Explanation:
According to the scenario, the computation of the given data are as follows:
Dividend = $1
Growth rate = 9%
Rate of return = 17%
So, we can calculate the current value of stock by using following formula:
Current value of stock = Dividend ÷ ( Rate of return - Growth rate )
By putting the value, we get
Current value = $1 ÷ ( 17% - 9%)
= $1 ÷ 0.08
= $12.5
Ответ:
anything but the lightning