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

Author Question: If a company pays a dividend of 5 to be received one year from now, dividends are expected to grow ... (Read 103 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
If a company pays a dividend of 5 to be received one year from now, dividends are expected to grow at a rate of 8 percent per year for the indefinite future, and the interest rate is 14 percent, the price of the company's stock should be ________
 
  per share.
  A) 8.00 B) 83.33 C) 227.27 D) 610.00

Question 2

A future payment's present value is
 
  A) the value in today's dollars of funds to be paid or received in the future.
  B) the value in today's dollars of funds to be paid or received today.
  C) the value in a future date's dollars of funds to be paid or received today.
  D) the value in a future date's dollars of funds to be paid or received in the future.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Eazy416

  • Sr. Member
  • ****
  • Posts: 360
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


vicotolentino

  • Member
  • Posts: 552
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce
A 100-Year Flood Map of Montpelier, Vermont A 100-Year Flood Map of Montpelier, Vermont
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670 New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period Observed Mother–Child Arguments at Five Time Points Over an Eight-Year Period
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
Sam and Jen had a tax liability of 5,115 last year. They were entitled to tax credits of 112 ... Sam and Jen had a tax liability of 5,115 last year. They were entitled to tax credits of 112 ...
Video: Supine Position

For a complete list of videos, visit our video library