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Author Question: You are considering the purchase of a common stock that paid a dividend of 2.00 yesterday. You ... (Read 66 times)

asan beg

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on: Jul 10, 2018
You are considering the purchase of a common stock that paid a dividend of 2.00 yesterday. You
  expect this stock to have a growth rate of 15 percent for the next 3 years, resulting in dividends of
  D1 = 2.30, D2 = 2.645, and D3 = 3.04.
 
  The long-run normal growth rate after year 3 is expected
  to be 10 percent (that is, a constant growth rate after year 3 of 10 per year forever). If you require
  a 14 percent rate of return, how much should you be willing to pay for this stock?
  A) 89.75 B) 56.46 C) 62.57 D) 83.65

Question 2

JPR Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn
  30 million in net income next year and retain 40 of it, how large can the capital budget be before
  common stock must be sold?
 
  A) 16.0 million B) 15.5 million C) 12.0 million D) 7.5 million
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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courtney_bruh

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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asan beg

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

jamesnevil303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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