The duo growth company just paid a dividend of $1 per share. the dividend is expected to grow at a rate of 25% per year for the next 3 years and then to level off to 5% per year forever. you think the appropriate market capitalization rate is 20% per year. (a) what is your estimate of the intrinsic value of a share of the stock? (b) if the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (c) what do you expect its price to be 1 year from now? is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate? explain.
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Business, 21.06.2019 20:40
On december 31, 2011, daggett company issued $750,000 of ten-year, 9% bonds payable for $700,353, yielding an effective interest rate of 10%. interest is payable semiannually on june 30 and december 31. prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on june 30, 2012, and (c) the semiannual interest payment and discount amortization on december 31, 2012. round amounts to the nearest dollar.
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Business, 22.06.2019 09:00
What should a food worker use to retrieve ice from an ice machine?
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Business, 22.06.2019 20:00
Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:
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Business, 22.06.2019 20:00
River corp's total assets at the end of last year were $415,000 and its net income was $32,750. what was its return on total assets? a. 7.89%b. 8.29%c. 8.70%d. 9.14%e. 9.59%
Answers: 3
The duo growth company just paid a dividend of $1 per share. the dividend is expected to grow at a r...
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