Business, 13.11.2019 03:31 expresslmnop

Bon chance, inc., has an odd dividend policy. the company has just paid a dividend of $3 per share and has announced that it will increase the dividend by $5 per share for each of the next four years, and then never pay another dividend. if you require a return of 9.7 percent on the company’s stock, how much will you pay for a share today

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Answer from: travisalier4171

If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

Explanation:

Price today = Present Value of Dividends

Present Value of Dividends :

Year Dividend Discounting Factor(9.7%)

0 3.0000

1 8.00 0.9115770282588880

2 13.00 0.8309726784493050

3 18.00 0.7574956047851460

4 23.00 0.6905155923292130

year Present Value(Dividend* Discounting factor)

1 7.2926162260711000

2 10.8026448198410000

3 13.6349208861326000

4 15.8818586235719000

Present Value of Dividends 47.612040555616600

Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

Answer from: Quest

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.

Answer from: Quest

Answerteleological in orientation; consequentialist as a moral theory; ///

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Bon chance, inc., has an odd dividend policy. the company has just paid a dividend of $3 per share a...

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