Business High School

Hahn Manufacturing is expected to pay a dividend of $1.00 per share at the end of this year. The stock currently sells for $45 per share, and its required rate of return is 11%. The dividend is expect to grow at a constant rate, g, forever. What is Hahn's expected growth rate?
a. 8.50%
b. 9.50%
c.10.00%
d. 8.00%
e.9.00%

Answers

Answer 1

Hahn's expected growth rate (g) is (b) 9.50%. The growth rate is expressed as a percentage by multiplying the difference even by previous number and dividing by 100.

What do you mean by expected growth rate?

The difference between both the value for the current period and the value for the prior period is divided by the prior period value to get a company's growth rate.

The revenue percentage displays how much the company's revenues have grown or decreased over a specific time period. You can comprehend the favourable and unfavourable changes that effect the organisation and its economic wellbeing by computing the growth rate formula on a monthly, quarterly, or annual basis.


Price = Dividend / (Required Rate of Return - Expected Growth Rate)

We know the price is currently $45 per share, the dividend is expected to be $1.00 per share, and the required rate of return is 11%. Plugging in these values, we get:

$45 = $1 / (0.11 - g)

Simplifying this equation, we get:

g = 0.095, or 9.5%

To know more about expected growth rate visit:

https://brainly.com/question/29847830

#SPJ11

Related Questions

Other Questions
you need to provide dhcp and file sharing services to a physical network. these services should be deployed using virtualization. which type of virtualization should you implement? answer virtual networks virtual servers network as a service (naas) virtual desktops the concept of having multiple layers of security policies and practices is known as: cybersecurity culture multifactor authentication defense in depth biometrics The salaries of six bank employees are $37,000, $38,500, $35,000, $37,000, $45,000, $40,000, and $75,000.Which statement is true?Question 1 options:Both the median and mode are appropriate measures of center.The mean, median, and mode are all appropriate measures of center.Both the mean and median are appropriate measures of center.The median is the only appropriate measure of center. I need help with a college assignment I dont have time to do it and its reading a short essay and answering some questions if you could take the time to help it would be very much appreciated the future value of an ordinary annuity table is used when calculating multiple choice question. the present value of a series of payments. the present value of a single amount. the future value of a series of payments. ___________ occurs when a supervisor earns less than his or her subordinatesa) Role conflictb) Role ambiguityc) status incongruenced) informal status This piece is in a ____________ key. Hint: read the description of the major and minor scales.majordissonantminorconsonant a group of people who dance, sing, and comment on the actions of the play what is the 4th term/number of (a+b)^9, pascals triangle?