If the present value equation used to calculate the price of a stock you are considering buying is 7 / (0.04 - 0.03), which of the following is correct, assuming that dividends will grow at a constant rate?
A) The stock price is 7, the dividend growth rate is 3 percent, and the interest rate is 1 percent.
B) The stock price is 700, the dividend growth rate is 3 percent, and the interest rate is 4 percent.
C) The dividend is 7 per share, the dividend growth rate is 1 percent, and the interest rate is 4 percent.
D) The dividend is 7 per share, the dividend growth rate is 4 percent, and the interest rate is 3 percent.
Question 2
If the present value equation used to calculate the price of a stock you are considering buying is 12 / (0.05 - 0.02), which of the following is correct, assuming that dividends will grow at a constant rate?
A) The dividend is 12 per share, the dividend growth rate is 5 percent, and the interest rate is 2 percent.
B) The dividend is 12 per share, the dividend growth rate is 2 percent, and the interest rate is 5 percent.
C) The stock price is 12, the dividend growth rate is 5 percent, and the interest rate is 3 percent.
D) The stock price is 12, the dividend growth rate is 2 percent, and the interest rate is 5 percent.
How to quickly find the vertex of a quadratic equation that is in standard form
Given the parent function f(x)=log10(bottom exponent)x, state the equation of the function that
According to the Balmer-Rydberg equation, electromagnetic radiation with wavelength λ = 486.1 ...
How to calculate the DRT to determine which is more effective against the pathogen
"The Department of Agriculture came out today with its prediction for food price
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.