This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The common stock of Cranberry Inc is selling for 26.75 on the open market. Next year's dividend is ... (Read 76 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
on: Jul 10, 2018
The common stock of Cranberry Inc is selling for 26.75 on the open market. Next year's dividend is expected
  to be 3.68, and the growth rate of this company is estimated to be 5.5.
 
  If Richard Dean, an average investor, is
  considering purchasing this stock at the market price, what is his expected rate of return?

Question 2

Consider a project with the following information:
  Year
  After-tax
  Accounting
  Profits from
  After-tax
  Cash Flow
  Operations
  1 799 750
  2 150 1,000
  3 200 1,200
  Initial outlay = 1,500
  Compute the profitability index if the company's discount
 
  rate is 10.
  A) 1.61 B) 1.81 C) 0.62 D) 15.8


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ecabral0

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 10, 2018
Answer to Question 1

R = (D/V) + g
R = (3.68/26.

Answer to Question 2

A


Deast7027

  • Member
  • Posts: 538
Reply 2 on: Jul 10, 2018
Gracias!

Perkypinki

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

The titration curve of phosphoric acid (H3PO4), a common buffer in biological sy The titration curve of phosphoric acid (H3PO4), a common buffer in biological sy
Common Abbreviations and Symbols Used by Massage Therapists Cont Common Abbreviations and Symbols Used by Massage Therapists Cont
DNA bending in an open-promoter complex DNA bending in an open-promoter complex
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Use a graphical method to find the length of the loan to the nearest year Use a graphical method to find the length of the loan to the nearest year
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Types of synapses - electrical & chemical

For a complete list of videos, visit our video library