Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. all questions a firm's earnings and dividends per

all questions A firm's earnings and dividends per share are expected to grow constantly...

80.2K

Verified Solution

Question

Finance

all questionsimage

A firm's earnings and dividends per share are expected to grow constantly by 3% a year. If next year's dividend is 0.65 per share and the market capitalisation rate is 7%, what is the current price of the share? a. 9.29 b. 21.29 c. 16.25 d. 28.25 Credit ratings provide a reflection of: a. Whether the banks used by the company are reputable. b. How likely it is that shareholders will receive a dividend. c. The level of trade credit the company provides to customers. d. The risk of default faced by the firm's debtholders. A rights-issue occurs when a. Emergency funding is sought from institutional investors only. b. Opportunity to purchase new shares is offered pro-rata to existing shareholders. c. New bonds are issued via an underwriter. d. A dividend is issued to preference shareholders

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