« previous next »

Author Question: Cascade Industries Inc intends to pay a common stock dividend of 3.18 one year from today and the ... (Read 20 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
on: Jul 11, 2018
Cascade Industries Inc intends to pay a common stock dividend of 3.18 one year from today and the firm anticipates that the dividend will continue to grow at a rate of 2 per year indefinitely.
 
  If the firm has a 13 required rate of return, what is the current price per share of stock?
  A) 21.20
  B) 28.91
  C) 21.62
  D) 29.49

Question 2

If your investment goal is merely to match the overall market, you should invest in an index fund.
 
  Indicate whether the statement is true or false


fraziera112

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 11, 2018
Answer to Question 1

B
Explanation: B) PV = (Div one)/(r-g) = 3.18/(.13-.02 ) = 28.91.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

A Common wild boar piglet in the Netherlands A Common wild boar piglet in the Netherlands
Common traditional surgical incisions Common traditional surgical incisions
Common Cinquefoil Common Cinquefoil
This 19-year-old in Wisconsin was given a reduced jail sentence for holding this sign in front of ... This 19-year-old in Wisconsin was given a reduced jail sentence for holding this sign in front of ...
Common Prefixes of the Metric System Common Prefixes of the Metric System
Research that has examined babies' ability to recognize themselves develops in the 2 year Research that has examined babies' ability to recognize themselves develops in the 2 year
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library