Business, 08.07.2021 22:50, payshencec21

A firm just paid its annual dividend of $1.80 and expects to increase that dividend each year. The discount rate is 11 percent. Which one of these correctly identifies an error when computing the current value of this firm's stock? a. Po = $1.80/(0.11 -0.03): The growth rate exceeds its limitation.
b. Po = ($1.80 x 1.12(0.11 -0.03); The growth rate in the denominator should be 12 percent to match the growth rate in the numerator.
c. Po = ($1.80 x (1 +.09)[0.11 -.09); The growth rate exceeds it limitation for using this formula
d. Po = $1.80/(0.11 -0.025); The value of Dt, is incorrect as $1.80 equals Do.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, heids17043

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized byanswers: process innovations. product manufacturing. product innovation. process manufacturing.

Answers: 1

continue

Business, 22.06.2019 12:50, emarquez05

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Answers: 2

continue

Business, 22.06.2019 16:00, ella3714

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:

Answers: 1

continue

Business, 22.06.2019 16:50, amayarayne5

Arestaurant that creates a new type of sandwich is using (blank) as a method of competition.

Answers: 1

continue

Do you know the correct answer?

A firm just paid its annual dividend of $1.80 and expects to increase that dividend each year. The d...