Polar Mechanical Systems will pay an annual dividend of $1.88 per share next year. The company just announced that future dividends will be increasing by 1.2 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 9.68 percent

I will pay $22.17 for one share.

Explanation:

Dividend valuation model is used to value the stock on the basis of their dividend payment, growth rate of dividend and required rate of return.

Us following formula of DVM to calculate thte value of stock

P = D / ( Required rate of return - Growth rate )

P = $1.88 / ( 9.68% - 1.2% )

P = $22.17

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; /// blank(1); increases; blank(2); decreases;