What is the value of a share of Henley Inc. to an investor who requires a 11 percent rate of return if Henley is expected to pay a fixed dividend of $1.10 for the next 3 years and
then the dividends will grow at a constant rate of 5% indefinitely

Value of Henley Inc.'s share is $16.76

Step-by-step explanation:

The present value of the dividends over for the three years and the terminal value of the dividends would give us a fair share price that an investor would pay

Year 1 PV of dividends=$1.10/(1+11%)^1=$0.99  

Year 2 PV of dividends=$1.10/(1+11%)^2=$0.89  

Year 3 PV of dividends=$1.10/(1+11%)^3=$0.80  

The terminal value formula=dividend*(1+g)/(r-g)

g is the dividend growth rate of 5%

r is the investor's required rate of return which is 11%

terminal value=$1.10*(1+5%)/(11%-5%)=$19.25

The terminal is discounted to present value using the discount factor of year 3

PV of terminal value =$19.25 /(1+11%)^3=$ 14.08  

Total present values=$0.99+$0.89+$0.80+$14.08 =$16.76

a. turk and mcalister

b. howard, mission, and market

c. yes. since streets end some do not cross yet are not parallel to others. example: mcalister and 5th

step-by-step explanation:

parallel lines are lines which do not intersect ever and look a lot like railroad tracks. turk, mcalister and golden gate are examples of these.

intersect are streets which cross each other and a car on one can reach the other. howard, mission, and market intersect with 6th.

skew lines are lines which neither intersect nor are parallel. these lines exist here because some streets end and never intersect another like mcalister and 5th.

87%

step-by-step explanation:

apex answer