Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock paid a dividend of %.50 in the current yea

A stock paid a dividend of %.50 in the current year and is expected to...

50.1K

Verified Solution

Question

Finance

A stock paid a dividend of %.50 in the current year and is expected to pay a dividend of $.75 next year (D1). the required rate of return is Rs=10.5%, and the expected constant rate is g=6.4%. what is stock's current price?

a) 17.39

b) 17.84

c) 18.29

d) 18.75

Please show work.

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

Medical Sciences
1.2K views

Question 1. which if the following does not occur during the \"Excitation\" of a skeletal muscle? A....

Chemistry
1.2K views

A cooling process at constant pressure involves the removal of 3.5 kW from the system. Compute the...

Physics
1.2K views

If a semiconductor has an intrinsic carrier concentration of 141x 10 6 m when doped...

Geometry
1.2K views

2 Determine the vertical and horizontal cross sections of the figure below then name it...

Calculus
1.2K views

Gravel is being dumped from a conveyor belt at a rate of 30 cubic feet...

Algebra
1.2K views

Place the correct symbol or between the two rational numbers a b c d 15...

Algebra
1.2K views

15 Which system of equations is represented in the following graph y X

Accounting
1.2K views

Normal losses are credited to the process account at the cost per unit incurred on...

Accounting
1.2K views

Which common ERP module category is typically the largest and most complex

Accounting
1.2K views

Using the data from Jan 1, 2015 to Dec 31, 2019, estimate the standard deviation...

Accounting
1.2K views

please I really need the calculation and the formulas for these answers so I can...

Finance
1.2K views

Anthony paid $18,000 for the development of custom computer software for his business. Over wht...