Author Question: SEC regulations require that corporate stock repurchases must be done in the open market so that ... (Read 35 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
SEC regulations require that corporate stock repurchases must be done in the open market so that
  all shareholders have an equal opportunity to sell their shares.
 
  Indicate whether the statement is true or false

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?
  A) 42.60
  B) 82.85
  C) 91.88
  D) 101.15
  E) 110.37


jjorrostieta

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

FALSE

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

For a complete list of videos, visit our video library