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

Author Question: ABC Company has been growing at a 10 rate, and it just paid a dividend of Do= 3.00. Due to a new ... (Read 90 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
on: Jul 10, 2018
ABC Company has been growing at a 10 rate, and it just paid a dividend of Do= 3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20 annually for the next 2 years.
 
  After this time growth is expected to return to the long-run constant rate of 10. The company's beta is 2.0, the required return on an average stock is 11, and the risk free rate is 7. What should the dividend yield (D1/Po) be today? (Round to the nearest whole percent.)
  A) 4
  B) 5
  C) 10
  D) 8
  E) 2

Question 2

Which of the following is NOT a source of unsecured short-term credit?
 
  A) trade credit B) commercial paper
  C) floating lien D) a line of credit


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

6ana001

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

C


james9437

  • Member
  • Posts: 568
Reply 2 on: Jul 10, 2018
Wow, this really help

elyse44

  • Member
  • Posts: 319
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
The mortality rate in the United States increases with age and is lower for women than men at every ... The mortality rate in the United States increases with age and is lower for women than men at every ...
Target Heart Rate Target Heart Rate
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
Video: Immune responses Animation

For a complete list of videos, visit our video library