Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. robotic atlanta inc. just paid a dividend of $4.00

Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0=4.00 )....

60.1K

Verified Solution

Question

Accounting

image
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0=4.00 ). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1=.20 ) and at a rate of 10 percent the following year (that is, g2=.10 ). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on Robotic Atlanta stock is 20 percent, compute the current price of the stock. (Round your answer to 2 decimal places and record your answer withoint dollar sign or commas)

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

Programming
1.2K views

Develop a Domain Class Model with proper annotation on paper. Music An album has a name and a...

Physics
1.2K views

Let the light ways moving from a material to another material. There are 2 scenarios: - The...

Physics
1.2K views

If a circuit consists of a battery connected to multiple resistors, and these resistors are connected...

Electrical Engineering
1.2K views

WHAT ARE THE DIFFERENCES BETWEEN TCP/IP AND UDP IN TERMS OF OSI LAYERS AND DEFINITION ITSELF? PLEASE...

Biology
1.2K views

What is meant by the focal length of a camera sensing system and (1) how...

Physics
1.2K views

2 A hammer with a head of mass M is to be used to drive...

Basic Math
1.2K views

Consider the simple economy that produces only three products Use the information in the following...

Calculus
1.2K views

A 40 ft pole casts a shadow as shown in the figure 40 ft a...

Accounting
1.2K views

2. The U.S. (either Federal, state, or local) does not impose: a. Franchise taxes. b....

Accounting
1.2K views

Usage of Financial Statements in Business Decisions Assume that you recently accepted a...

Accounting
1.2K views

Company X has net sales revenue of $780,000, cost of goods sold of $343,200, and...

Finance
1.2K views

You are trying to estimate the intrinsic value of the shares of Flying High Ltd,...