« previous next »

Author Question: Cascade Industries Inc intends to pay a common stock dividend of 3.18 one year from today and the ... (Read 28 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
on: Jul 11, 2018
Cascade Industries Inc intends to pay a common stock dividend of 3.18 one year from today and the firm anticipates that the dividend will continue to grow at a rate of 2 per year indefinitely.
 
  If the firm has a 13 required rate of return, what is the current price per share of stock?
  A) 21.20
  B) 28.91
  C) 21.62
  D) 29.49

Question 2

If your investment goal is merely to match the overall market, you should invest in an index fund.
 
  Indicate whether the statement is true or false


fraziera112

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 11, 2018
Answer to Question 1

B
Explanation: B) PV = (Div one)/(r-g) = 3.18/(.13-.02 ) = 28.91.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

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?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Body plan of a common rotifer, Philodina genus Body plan of a common rotifer, Philodina genus
All living organisms descended from a common ancestral cell All living organisms descended from a common ancestral cell
The plesiadapiforms may have been primates, but they lacked certain features, such as a postorbital The plesiadapiforms may have been primates, but they lacked certain features, such as a postorbital
David P. Bradley (White Earth Oijbwe, and Mdewakaton Dakota), Indian Country Today. David P. Bradley (White Earth Oijbwe, and Mdewakaton Dakota), Indian Country Today.
Common Homophones Common Homophones
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
Video: Factors that increase metabolic rate and heat production

For a complete list of videos, visit our video library