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Author Question: Ramble-On-Rose Florists Inc. common shares are priced at $39.96 today and are expected to pay the ... (Read 35 times)

sdfghj

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on: Apr 25, 2021
Ramble-On-Rose Florists Inc. common shares are priced at $39.96 today and are expected to pay the next annual dividend of $1.85 in one year's time. Investors have historically required an 11% return for holding Ramble-On stock. Assume that the dividends grow at a constant rate in perpetuity, and calculate the growth rate implicit in today's stock price. Then, calculate the fair price for the stock after the $1.85 dividend in one year's time. Finally, calculate the capital gain rate. That is, the percentage change in the stock price between today and one year from now.
◦ 4.63%, $30.39, 31.50%
◦ 4.63%, $40.64, 5.38%
◦ 6.37%, $39.96, 0.00%
◦ 6.37%, $42.55, 6.37%
◦ 6.37%, $42.55, 6.48%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by sdfghj on Apr 25, 2021

ricroger

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Reply #1 on: Apr 25, 2021
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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sdfghj

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

nathang24

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Reply 3 on: Yesterday
Excellent

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