Business, 05.05.2020 16:45, ziazozaya

CHERCRO Inc. is a startup. It is estimated that the company will not be paying any dividends for the coming 4 years. If the company distributes $3 per share 5 years from today, the growth rate of the dividends will be 2% per year going forward. If, instead the company distributes $2 per share at the 5th year, the growth rate of dividends will be 6% per year. As an investor of CHERCRO, which policy would you support if the market rate is 12%? (Hint: the value of a share is the expected present value of the entire future dividend stream)

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:20, Adolfosbaby

As a project manager for a large construction company, shaun decided to make the performance appraisal process as painless as possible for his crew. he spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. some employees were sent to vestibule training, and one even got a promotion with additional compensation. what did he fail to do correctly

Answers: 2

continue

Business, 22.06.2019 14:50, QuarkyFermion

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Answers: 3

continue

Business, 23.06.2019 00:00, nassercruz04

Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.

Answers: 2

continue

Business, 23.06.2019 13:10, makaylahunt

Liberty capital had seen its net income increase dramatically from the previous year, yet over the same period of time, its net cash provided from operations had decreased. which of the following would explain how this situation came about? liberty's expenditures on fixed assets had declined. liberty's depreciation and amortization expenses had declined. liberty's interest expense had increased. liberty's cost of goods sold had increased.

Answers: 2

continue

Do you know the correct answer?

CHERCRO Inc. is a startup. It is estimated that the company will not be paying any dividends for the...