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Author Question: Assume that the average firm in your company's industry is expected to grow at a constant rate of ... (Read 18 times)

cartlidgeashley

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on: Apr 25, 2021

Question 1

An increase in a firm's market risk should be reflected in what part(s) of the Gordon growth model?
◦ The dividend growth rate
◦ The required return
◦ Next year's dividend

Question 2

Assume that the average firm in your company's industry is expected to grow at a constant rate of 5%, and its dividend yield is 4%. Your company is about as risky as the average firm in the industry, but it has just developed a line of innovative new products which leads to expect that its earnings and dividends will grow at a rate of 40% this year and 25% the following year, after which growth should match the 5% industry average rate. The last dividend paid was $2. What is the value per share of your firm's stock?
◦ $42.60
◦ $82.85
◦ $91.88
◦ $101.15
◦ $110.37
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by cartlidgeashley on Apr 25, 2021

Kimmy

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cartlidgeashley

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Reply 2 on: Apr 25, 2021
:D TYSM

cpetit11

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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