Two chemical corporations, both equity financed with no debt, are essentially in the same business. However, whereas one of the corporations has a stable earnings and dividend record, paying out all its earnings in dividends, the other is a growth stock increasing its earnings and dividends annually through a different management strategy. The current dividend is $5 per share for both corporations. The stable corporation's stock trades for $40 per share and the price of the growth stock is $50.Estimate the investors' required rate of return on these stocks and the steady future growth rate of the growing corporation as perceived by the market. if someone can do this and show me how its done i would greatly appreciate it.

current dividend $5

price of stable corporation $40

price of growth stock $50

in order to calculate the price of stocks we use the perpetuity or perpetuity with growth formula:

the investors' required rate of return for the stable corporation:

$40 = $5 / rrr

rrr = $5 / $40 = 12.5%

what changes with the growth corporation is not the rrr, it is the growth rate that decreases it:

$50 = $5 / (rrr - g) = $5 / (0.125 - g)

0.125 - g = $5 / $50

0.125 - g = 0.1

g = 0.125 - 0.1 = 0.025 or 2.5%

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.