« previous next »

Author Question: Royal Bank common shares pay dividends annually. They just paid a 1.50 dividend. Stock holders ... (Read 100 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
on: Jul 10, 2018
Royal Bank common shares pay dividends annually. They just paid a 1.50 dividend. Stock holders require a return of 12. Royal is expected to continue paying dividends that will grow at 3.5 per annum in perpetuity.
 
  What is the fair price of a share of Royal Bank stock?
  A) 18.26
  B) 12.50
  C) 17.65
  D) 18.90
  E) 16.72

Question 2

Which of the below is NOT a major component of interest rates?
 
  A) Real rate
  B) Inflation premium
  C) Historical interest rates
  D) Default premium


Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Common Buttercup Common Buttercup
The common rail on a Cummins diesel engine. A high-pressure pump (up to 30,000 PSI) is used to ... The common rail on a Cummins diesel engine. A high-pressure pump (up to 30,000 PSI) is used to ...
Common warts. Common warts.
Common Abbreviations and Symbols Used by Massage Therapists Cont Common Abbreviations and Symbols Used by Massage Therapists Cont
Basalt is the most common type of stone used in hot stone therapy. Basalt is the most common type of stone used in hot stone therapy.
Video: Resting membrane potential - electrical polarity and maintenance requirements

For a complete list of videos, visit our video library