« previous next »

Author Question: Cascade Industries Inc intends to pay a common stock dividend of 3.18 one year from today and the ... (Read 65 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?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

McBurney’s point is the common location of pain in children and adolescents with appendicitis. McBurney’s point is the common location of pain in children and adolescents with appendicitis.
Common locations of venous thrombosis. (A) The most common sites of deep vein thrombosis. (B) DVT ex Common locations of venous thrombosis. (A) The most common sites of deep vein thrombosis. (B) DVT ex
The 20 common amino acids used to build proteins The 20 common amino acids used to build proteins
A 100-Year Flood Map of Montpelier, Vermont A 100-Year Flood Map of Montpelier, Vermont
On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
Common Abbreviations and Symbols Used by Massage Therapists Cont Common Abbreviations and Symbols Used by Massage Therapists Cont
Video: Carpal Tunnel Syndrome

For a complete list of videos, visit our video library