subject
Business, 05.11.2019 06:31 fatherbamboo

Astock is expected to pay a year-end dividend of $2.00, i. e., d1 = $2.00. the dividend is expected to decline at a rate of 5% a year forever (g = −5%). if the company is in equilibrium and its expected and required rate of return is 15%, which of the following statements is correct? a. the company's dividend yield 5 years from now is expected to be 10%.b. the constant growth model cannot be used because the growth rate is negative. c. the company's expected capital gains yield is 5%.d. the company's expected stock price at the beginning of next year is $9.50.e. the company's current stock price is $20.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
According to maslow's hierarchy of needs theory, which of the following would be an issue that requires the fulfillment of a lower order need? a)the need for a challenging project at work. b)the need for a promotion at work.c) the need to locate your business in an area with a low crime rate. d)the need for a mentor to you ascend within the company. none of the above
Answers: 3
question
Business, 21.06.2019 21:30
Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.
Answers: 3
question
Business, 22.06.2019 07:50
Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.
Answers: 2
question
Business, 22.06.2019 13:50
Which one of the following statements is true? ddt does not prevent disease from passing from agricultural animals to humans. cost was a major factor in the united states government's decision to ban ddt. many african governments concluded that the potential long-term health effects of ddt were not as serious as the immediate problem of insect control. ddt cannot accumulate in the fat of animals. the ddt ban in the united states has made it very difficult to control agricultural insect pests.
Answers: 3
You know the right answer?
Astock is expected to pay a year-end dividend of $2.00, i. e., d1 = $2.00. the dividend is expected...
Questions
question
Mathematics, 08.12.2020 21:10
question
Mathematics, 08.12.2020 21:10
question
Mathematics, 08.12.2020 21:10
question
Advanced Placement (AP), 08.12.2020 21:10
question
Physics, 08.12.2020 21:10
question
Mathematics, 08.12.2020 21:10
question
Mathematics, 08.12.2020 21:10
question
Mathematics, 08.12.2020 21:10
Questions on the website: 13722367