You are considering purchasing stock. The stock is expected to pay a dividend of $87 per share. The consensus of investors is that these dividends will increase at a rate of 3 percent per year for indefinate future, and the interest rate is 7 percent. The price of stock should be ___.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are considering purchasing stock. The stock is expected to pay a dividend of $87 per share. The consensus of investors is that these ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Decide whether each situation is a checking account deposit or debit. Drag each situation to correct category.
Answers (1)
Other things equal, an increase in defense spending will increase the budget deficit. a. true b. false
Answers (1)
The Riverbed Company manufactures 1,488 units of a part that could be purchased from an outside supplier for $14 each.
Answers (1)
Kanet Company issued common stock for proceeds of $386,000 during 2017. The company paid dividends of $80,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year.
Answers (1)
Which of the following is most likely NOT a role played by the HR department in the performance appraisal process?
Answers (1)
New Questions in Business
Broom Corporation transfers assets with an adjusted basis of $300,000 and an FMV of $400,000 to Docker Corporation in exchange for $400,000 of Docker Corporation stock as part of a taxminusfree reorganization.
Answers (2)
Coins, currency, demand deposits and travelers checks fit what definition of money supply? a. M1 b. M2 c. M3 d. M4
Answers (1)
Which of the following lists correctly orders assets from most liquid to least liquid? Savings deposits, paper currency, house, stocks Paper currency, savings deposits, stocks, house Stocks, house, paper currency, savings deposits Stocks, paper
Answers (1)
Real risk-free rate is 2.25% (r*). Inflation is expected to be 2.5% (IP) this year and 4.25% during the next 2 years. Assume maturity risk premium is 0. What is the yield on 2 year Treasury securities.
Answers (1)
Micron owns 35% of Martok. Martok pays a total of $47,000 in cash dividends for the period. Micron's entry to record the dividend transaction would include a: Credit to Long-Term Investments for $16,450. Debit to Long-Term Investments for $16,450.
Answers (1)