A company just paid a dividend of $1.20 per share at the end of the year. It is expected to grow at 12% per year for three years, after that it grows constantly at 6%. The cost of equity is 9.5%. What is the current price of stock?

Answers

Answer 1

The current price of the stock given the dividend, cost of equity and growth rates is $46.90.

What is the current stock price?

Thw two-stage dividend growth model would be used to determine the value of the stock.

First stage:

dividend in Y1 = 1.20x 1.12 = 1.344dividend in Y2 = 1.20 x 1.12^2 = 1.505dividend in Y3 = 1.20 x 1.12^3 = 1.69

Second stage:

Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059

Find the present value of these cash flows

(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90

To learn more about the two stage dividend model, please check: https://brainly.com/question/26564273


Related Questions

Solve using substitution
I WILL GIVE THANKS AND MARK BRAINLIEST.

Answers

Answer:

[tex]\displaystyle Dependency\:[Infinitely\:Many\:Solutions][/tex]

Explanation:

In the bottom equation, moving [tex]\displaystyle -2x[/tex]to the oppocite side will give you the linear standard equation above it, therefore numerous solutions will occur.

I am joyous to assist you at any time.

Use the empirical rule to find a reasonable estimate for P(z ≤ 0. 82). 10% 30% 50% 80%.

Answers

P(z ≤ 0. 82)  or p-value corresponding to z ≤ 0. 82 comes to be approximately 80%.

What is a z-score?

Z-score indicates how much a given value differs from the standard deviation.

[tex]z=\frac{x-\mu}{\sigma}[/tex]

Where [tex]\mu[/tex] = mean

[tex]\sigma[/tex]=standard deviation

P(z ≤ 0. 82) means the p-value corresponding to z≤ 0. 82.

From the standard normal table

P(z ≤ 0. 82) ≈80%.

Hence, P(z ≤ 0. 82)  or p-value corresponding to z ≤ 0. 82 comes to be approximately 80%.

To get more about the z-score visit:

https://brainly.com/question/25638875

HELLP ME DUE TODAY

A coin is used to simulate the probability of parents having 1 boy and 1 girl if they have a total of two children. A head represents having a girl, and a tail represents having a boy. The coin is flipped twice for each trial. The first flip represents the first child, and the second flip represents the second child. The experiment was performed 12 times, and the results are recorded in the following table.

Trial First Flip Second Flip
1 H H
2 H T
3 T H
4 H T
5 T T
6 H H
7 T H
8 H T
9 H H
10 T T
11 T T
12 H H

Based on the simulation, what is the probability that parents will have 1 boy and 1 girl if they have a total of two children?

Enter your answer as a reduced fraction, like this: 3/14

Answers

From the table, it is found that there is a [tex]\frac{5}{12}[/tex] probability that parents will have 1 boy and 1 girl if they have a total of two children.

What is a probability?

A probability is given by the number of desired outcomes divided by the number of total outcomes.

In this problem, out of 12 experiments, 5 resulted in one of each, hence:

[tex]p = \frac{5}{12}[/tex]

There is a [tex]\frac{5}{12}[/tex] probability that parents will have 1 boy and 1 girl if they have a total of two children.

More can be learned about probabilities at https://brainly.com/question/14398287

7. What is the length of SW?

Answers

Answer:

SW = 130

Step-by-step explanation:

[tex]2(2x+5)=5x-20[/tex]

This is what the equation should be because this is a rectangle.

[tex]4x+10=5x-20[/tex]

Once you finish simplifying, move the numbers and variables over to get this.

[tex]x=30[/tex]

Then do multiplication and addition to get 130.

3-5 1/3 on a number line

Answers

Show the picture of the problem

A company makes wax candles in the shape of a cylinder. Each candle has a diameter of 8 inches and a height of 2 inches. How much wax will the company need to make 160 candles? Use 3.14 for[tex]\pi[/tex] , and do not round your answer.

Answers

Answer: 18,086.4 cubic units

Step-by-step explanation:

the radius squared: 3×3.14×4²=150.72.

If you want to make 120 candles, multiply that number by 120: 150.72×120=18086.4.

If you invest $1600 at 5.25% for 18 months, how much simple interest is earned?

A) $10,500
B) $1,260
C) $126
D) $1,512

Answers

Answer:

the correct answer is is b

what's the square root of the area of a square with side 13?​

Answers

Side=13

Area :-

[tex]\\ \rm\rightarrowtail side^2[/tex]

[tex]\\ \rm\rightarrowtail 13^2[/tex]

[tex]\\ \rm\rightarrowtail 169[/tex]

Square root:-

√169=13

What value of k make the equation 7(14k + 15) -7 = 19k + 6 (-13 + 15k) true?

A. -5
B. -9
C. 16
D. 25

Answers

Answer: the answer is c- 16

HELP Two workers, if they were working together, could finish a certain job in 24 days. If one of the workers does the first half of the job and then the other one does the second half, the job will take them 50 days. How long would it take each worker to do the entire job by himself?

Answers

this has been already answered.

https://brainly.com/question/15414578

if p(x)=x2+2x-5 and g(x)=x-3, what is p(x) – gx)?

Answers

Answer:

x2+x-2

Step-by-step explanation:

i had this question before

What number
comes next?
78.2; 78; 77.8; ...

Answers

Answer:

77.6

Step-by-step explanation:

Each number is subtracted by 0.2

Hope that helps!

Question Find the circumference of the pizza. Round your answer to the nearest tenth.

Answers

Circumference = 2pi*r = 2 pi * 6 = 37.7 in

What is the length of the radius? startfraction 6 over 85 endfraction startfraction 85 over 12 endfraction startfraction 121 over 36 endfraction startfraction 157 over 12 endfraction

Answers

The length of the radius will be 22 units.

What is the radius?

The radius of a circle is defined as the distance of the center of the circle to its outer layer. It is a locus of a point present at some distance from the center point.

Now from the question, we have an expression:

[tex]r=(\dfrac{6}{85} )\times(\dfrac{85}{12} )\times (\dfrac{121}{36} )\times (\dfrac{157}{12} )[/tex]

By solving the above equation we get

[tex]r=(\dfrac{18997}{864} )[/tex]

[tex]r=22[/tex]

Hence the length of the radius will be 22 units.

To know more about radius follow

https://brainly.com/question/24375372

Answer:

85/12

Step-by-step explanation:

An equilateral triangle with side length 7 cm is shown in the diagram, work out the area of the triangle.
Give your answer rounded to 1 DP.

Answers

If a triangle has sides of 7 cm and it is an equilateral you can draw a line right down the middle to form two congruent triangles.

These smaller triangles have a hypotenuse of 7cm and a base of 3.5 cm (7/2)

To work out the height, use Pythagoras’ theorem.

a^2 + b^2 = c^2 where c is the hypotenuse and a and b are the other two sides

7^2 - 3.5^2 = 36.75

Square root answer

= 6.06 cm

That’s the height of the triangle

Area of a triangle is base x height divided by 2

So 7 x 6.06 = 42.43…

/2

= 21.2 cm^2 to one d.p

Hope this helped!
Please mark Brainliest!!

How do function models help us to understand the world?

Answers

Answer:

mathematical represents alot of stuff in the really world

4/5 and -4/5 are same or not ​

Answers

Answer:

not

Step-by-step explanation:

Answer:

4/5 and -4/5 are not same because

4/5=

In a regular polygon the line from the center to the mid-point of an outer side is a(n)

Answers

Answer:

The apothem (sometimes abbreviated as apo) of a regular polygon is a line segment from the center to the midpoint of one of its sides. Equivalently, it is the line drawn from the center of the polygon that is perpendicular to one of its sides.

Step-by-step explanation:

Apothem In a regular polygon the line from the center to the mid-point of an outer side is a(n).

What is a cube?

It is a polygon having six faces.

The volume of a cube is a side cube.

We have,

The apothem of a regular polygon is a line segment from the center to the midpoint of any one of its sides.

Thus,

The line from the center to the mid-point of an outer side is a(n) is Apothem.

Learn more about cubes here:

https://brainly.com/question/11168779

#SPJ2

what two numbers add up two 40 but multiply to get 100

Answers

The two numbers are illustrations of system of equations

The two numbers are 2.7 and 37.3

How to determine the two numbers?

Let the numbers be x and y.

So, we have the following equations

x + y = 40

xy = 100

To determine the value of the variables, we simply plot the graph of both equations

From the graph, we have the following result

(x,y) = (2.7, 37.3)

Hence, the two numbers are 2.7 and 37.3

Read more about system of equations at:

https://brainly.com/question/14323743

forgot can you explain the answer

Answers

Answer:

18 is 30% of 60

Step-by-step explanation:

Try to line up percents % and the actual numbers they represent.

number : precent

       60  is 100%

        18  is x %

cross multiply

x·60 = 100·18

divide both sides by 60 to isolate x

x = ((100·18)/60

x = 30

can you pls help me i need it?

Answers

Answer:

$114.75

Step-by-step explanation:

You have to multiply the hours by the wage. Looking at the time that the worker was in during the morning, it was a total of 4 hours. Since the wage is $13.50/hr, we would multiply 13.50 by 4.

13.50 * 4 = 54.00

So, now we have to add together the total hours in the afternoon. If we count the time, we get 4 1/2 hours. So, now we multiply 13.50 by 4.5.

13.50 * 4.5 = 60.75

Now, to find the total pay for that day, we add both the morning and the afternoon pay together.

54.00 + 60.75 = 114.75

Therefore, the pay for this day is $114.75.

If ∠A > ∠B, then what is the relation between AC and BC?

Answers

Answer:

ab and ac are congruent with each other

Answer:

BC > AC

Step-by-step explanation:

∠A > ∠B (Given)

Side opposite to larger angle is larger and side opposite to smaller angle is smaller.

->AC < BC

or

BC > AC

PLEASE HELP ill like!!!!!! Its 20 points

Answers

Answer:

1. Degree= 6, trinomial

2. degree= 4, binomial

Step-by-step explanation:

1. The largest exponent is 6 making it the degree and there are three terms because (m^5n^2), (mn^2), (n^6).

2. Since (9a^2bc^2) has the more than 1 exponent, you add them and the  degree is 4. There are two terms because (2a^3b), (9a^2bc^2).

please me please pls

Answers

the line passes through the point ( - 8 ; - 2)

so f(-8) = - 2

you buy a sandwich for $6.965, a salad for $3.25, and a drink for $1.79. if sales tax is 7%, how much change do you receive from $20 bill, rounded to the nearest cent?

Answers

6.965 + 3.25 + 1.79 = 12.005, now, let's apply a 7% taxation on that

[tex]\begin{array}{|c|ll} \cline{1-1} \textit{a\% of b}\\ \cline{1-1} \\ \left( \cfrac{a}{100} \right)\cdot b \\\\ \cline{1-1} \end{array}~\hspace{5em}\stackrel{\textit{7\% of 12.005}}{\left( \cfrac{7}{100} \right)12.005}\implies 0.84035~\hfill \underset{total~bill}{\stackrel{12.005~~ + ~~0.8435}{12.84535}} \\\\\\ 20~~ - ~~12.84535\implies 7.15465~~\approx ~~ \$7.15[/tex]

Please help! Will mark brainliest <3. (Click on the photo too see the question!)

Answers

Answer:

☐ [tex]\displaystyle \textcolor{blue}{A.}\:\angle{S}\:and\: \angle{J}[/tex]

☑ [tex]\displaystyle \textcolor{blue}{B.}\:\angle{G}\:and\: \angle{M}[/tex]

☐ [tex]\displaystyle \textcolor{blue}{C.}\:\angle{H}\:and\: \angle{P}[/tex]

☑ [tex]\displaystyle \textcolor{blue}{D.}\:\angle{R}\:and\: \angle{U}[/tex]

Explanation:

Accourding to the Vertical Angles Theorem, vertical angles are considered congruent. So, we need to make sure find all pairs of angles that reflect each other like a mirror [NO LINEAR INTERFERENSES], and those would be the above checked checkboxes.

I am joyous to assist you at any time.

Find the surface area of the solid figure

Answers

Answer:

150

Step-by-step explanation:

area of your base (bh/2) 3x8/2 = 12

2 bases = 24

3 faces ---- Face1 - 7x5= 35 ------Face2 - 7x5 = 35 ------Face3 - 8x7 = 56

24 + 35 + 35 + 56 = 150

6. The figure below is composed of nine congruent
squares. What is the area of the shaded portion?
12 in
Ath 12 in

Answers

The Area of the shaded portion = area of 5 shaded squares = 80 in.².

What is the Area of a Square?

Area of a square = s², where the edge length is s.

Edge length of each small square = 12/3 = 4 in.

Area of the shaded portion = area of 5 shaded squares = 5(s²)

s = 4 in.

Area of the shaded portion = 5(4²)

Area of the shaded portion = 80 in.²

Therefore, the Area of the shaded portion = area of 5 shaded squares = 80 in.².

Learn more about area of square on:

https://brainly.com/question/813881

What is the speed of the car that travels 2955 km in 13 hours?

ROUND TO THE NEAREST WHOLE NUMBER

Answers

Hello There!!

Given,

Distance (d)= 2955 km

Time (t)= 13 hr

To Find,

Speed (s)=?

Solution

[tex]s = \frac{d}{t} \\ \\ s = \frac{2995}{13} \\ \\ s = 227.308 \: \: \text{km/hr}[/tex]

Rounding To Nearest Whole Number= 227 Km/hr

[tex] \therefore \text{speed} = 227 \text{km/hr}[/tex]

Hope This Helps

Answer:

As Per Provided Information

Distance travelled by the car is 2955 Km

and it takes 13 hours to cover that distance .

We have been asked to determine the speed of the car .

[tex] \boxed{\bf \: speed \: = \dfrac{Distance Travelled by Car}{Total Time Taken }}[/tex]

substituting the value we get

[tex] \longrightarrow\sf \: Speed = \dfrac{2955}{13} \\ \\ \\ \longrightarrow\sf \: Speed = \cancel\dfrac{2955}{13} \\ \\ \\ \longrightarrow\sf \: Speed =227.30 \\ \\ \\ \longrightarrow\sf \: Speed \approx227 \: km {hr}^{ - 1} [/tex]

Therefore,

Speed of the car is 227 Km/hr.

HELP PLEASE!! 20 Points!! Write the ratio of corresponding sides for the similar triangles and reduce the ratio to lowest terms.

Answers

Answer:

my answer was wrong

Other Questions
You roll two number cubesLet event A = You roll an even number on the first cube.Let event B = You roll a 2 on the second cube.Are the events independent or dependent? Why?O A. Dependent, because both cubes have six sides.O B. Independent, because the outcome of the first roll doesn't affectthe outcome of the second roll.O C. Independent, because they have no outcomes in common.D. Dependent, because 2 is an even number. Please give me the answers Why was the bill of rights written after the us constitution Help if you understand thanks I really need help with the answers is respiration like burning?Explain your answer. what statement best describes the farms at the beginning of the great depression? A. Because of an increase in foreign-grown crops imported into the country, American crops decreased in value. B. Farmers during this time were unable to reach the production levels of earlier years because of a smaller available workforce. C. Farmers could not sell their crops because no one had money to buy them, so a barter system developed in rural areas. D. As the federal government acted to improve the economy, farming was surpassed by industry as the nation's top economic sector. Bought food. Fix the sentence When does sound become damaging to the human ear? If you could write a play about any topic, what would you write about and why? What recent movie or television show do you think would make a great stage production? Why What technical role do you think is the most challenging? What would you do if the lead performer of your show got pneumonia onopening night? How can actors help each other to succeed in their roles? If you were to go back to a certain era or to a different country to learn moreabout a certain type of theatre, when/where would you go and why? (For example: ancient Greek theatre, Japanese Noh theatre, the Renaissance, commedia dellarte in Italy, etc.) Whose job is easier: onstage performers or backstage crew? Why? What do you think will be the next big thing in the theatrical world? How could you present an extreme sport or extreme activity safely andcreatively onstage? (Such as downhill skiing, skydiving, rock climbing,surfing, bobsledding, etc.) What historical or literary character deserves to have a show written aboutthem? Que es el verbo? Que es el adjetivo? Why are streak plates used the test minerals? A. They show you the silicon content of the minerals B. They show you the colors of the impurities in the mineral C. They show you the true color of the minerals When did the constitution give all adult men the right to vote?. Which statement accurately compares timber and sunlight? timber and sunlight are nonrenewable resources. timber and sunlight are renewable resources. timber is a renewable resource, and sunlight is a nonrenewable resource. timber is a nonrenewable resource, and sunlight is a renewable resource. George wanted to measure the angle of a water slide at the lake. He used a sheet of folded paper that formed a 20 angle. He measured and found that three of the folded paper angles would fit in the angle made by the slide and the ground.Which of the following was the angle of the water slide? PLEASE HURRYSolve the inequality and express your answer in interval notation.x2 + 8x-7 Is my answer correct? Which action best illustrates jacob riis's response toward the conditionshe witnessed in new york's lower east side? *civil disobediencesettlement workmuckrakingboycotting As a team lead, Emilio has convened a group of five team members to solve an issue with the marketing campaign. This is an example of a(n) Which expression is the factorization of x2 10x 21?