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

Author Question: Nike's common shares are currently trading at 57.12. Dividends on this stock are paid annually and ... (Read 47 times)

WhattoUnderstand

  • Hero Member
  • *****
  • Posts: 517
on: Jul 10, 2018
Nike's common shares are currently trading at 57.12. Dividends on this stock are paid annually and are expected to grow at 2 per annum in perpetuity. Shareholders required return on this investment of 3.
 
  The most recent dividend was paid yesterday and the next dividend will be paid in one year. How big was yesterday's dividend?
  A) 0.55
  B) 0.56
  C) 0.57
  D) 0.60
  E) 0.62

Question 2

Jordan will need 20,000 at the end of 6 years to put a down payment on a house. What rate of return will he need to earn if he can invest 12,250 today?
 
  A) 8.5
  B) 7.5
  C) 8.0
  D) 9.0
  E) 9.5


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Yixagurpuldink

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

A


WhattoUnderstand

  • Member
  • Posts: 517
Reply 2 on: Jul 10, 2018
Gracias!

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

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?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Cell division in common life cycles Cell division in common life cycles
Common drainage devices; C. Jackson-Pratt. Common drainage devices; C. Jackson-Pratt.
McBurney’s point is the common location of pain in children and adolescents with appendicitis. McBurney’s point is the common location of pain in children and adolescents with appendicitis.
Common skin signs are often evidence of an illness or disorder. A wheal is a localized, evanescent ... Common skin signs are often evidence of an illness or disorder. A wheal is a localized, evanescent ...
Common Root Words and Combining Forms Cont Common Root Words and Combining Forms Cont
Common Abbreviations and Symbols Used by Massage Therapists Cont Common Abbreviations and Symbols Used by Massage Therapists Cont
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library