subject
Business, 04.04.2020 02:10 Jocelyn0925

Suppose that a friend has started a business selling software. The software is a great hit, and the firm quickly grows large enough to be able to sell stock. Your friend's firm promises to pay a dividend of $6 per share every year for the next 55 years, at which point your friend intends to shut down the business. The firm's stock is currently selling for $62 per share. If you believe that the company really will pay dividends as stated and if you require a rate of return of 11% to make this investment, should you buy the stock?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:30
Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?
Answers: 1
question
Business, 21.06.2019 21:30
Asavings account that pays interest every 3 months is said to have a interest period
Answers: 1
question
Business, 22.06.2019 04:30
Peyton taylor drew a map with scale 1 cm to 10 miles. on his map, the distance between silver city and golden canyon is 3.75 cm. what is the actual distance between silver city and golden canyon?
Answers: 3
question
Business, 22.06.2019 10:50
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 3
You know the right answer?
Suppose that a friend has started a business selling software. The software is a great hit, and the...
Questions
question
Biology, 21.08.2019 22:00
Questions on the website: 13722367