« previous next »

Author Question: Royal Bank common shares pay dividends annually. They just paid a 1.50 dividend. Stock holders ... (Read 101 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
on: Jul 10, 2018
Royal Bank common shares pay dividends annually. They just paid a 1.50 dividend. Stock holders require a return of 12. Royal is expected to continue paying dividends that will grow at 3.5 per annum in perpetuity.
 
  What is the fair price of a share of Royal Bank stock?
  A) 18.26
  B) 12.50
  C) 17.65
  D) 18.90
  E) 16.72

Question 2

Which of the below is NOT a major component of interest rates?
 
  A) Real rate
  B) Inflation premium
  C) Historical interest rates
  D) Default premium


Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

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?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

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?

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).

Head rubbing and licking are common social behaviours within a pride Head rubbing and licking are common social behaviours within a pride
Examples of common forms of strabismus: (A) esotropia with the right eye turning inward and (B) exot Examples of common forms of strabismus: (A) esotropia with the right eye turning inward and (B) exot
All living organisms descended from a common ancestral cell All living organisms descended from a common ancestral cell
Bank Bank
The coagulation cascade. Both the intrinsic pathway and extrinsic pathway lead to a common pathway ... The coagulation cascade. Both the intrinsic pathway and extrinsic pathway lead to a common pathway ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Flexor reflex & Crossed extensor reflex

For a complete list of videos, visit our video library