Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Montana Motors' stock has a required return of 13%, and the stock sells for $50 per share. The year-end dividend, D1, is expected to be $2.00 per share. After this payment, the dividend is expected to grow by 30% per year for the next 3 years, so D4 = $2.00(1.30)3 = $4.3940. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t = 4, i.e., what is X?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M947263

Have any Question? 


Related Questions in Basic Finance

What rate of return do investors require on general

What rate of return do investors require on General Electric (ticker: U:GE) common stock? Use the annual dividends per share reported for the last fi ve years to determine the compound annual growth rate in dividends. As ...

1 how is a hazard different from a disaster2 what is the

1. How is a hazard different from a disaster? 2. What is the most frequent and widespread disaster-causing hazard? 3. What scale is commonly used to describe the effects of earthquakes? 4. How are earthquakes measured?

1 what are placebo effects and how can they be avoided2

1. What are placebo effects, and how can they be avoided? 2. What are demand characteristics, and how can they be avoided? 3. In what ways may experimenters unwittingly communicate their expectations to research particip ...

Nme at least three ways to reduce the possibility of scc

Name at least three ways to reduce the possibility of SCC? Which is better, a relatively small anode or a large one and why? Is coating a fastener always helpful in fighting corrosion resistance, even if there are minor ...

If benchmarking does not exist at any level within an

if benchmarking does not exist at any level within an organization, identify some organizational goals that could benefit from benchmarking activities, and strategies you would recommend to employ benchmarking

Ritz furniture has a contribution margin ratio of 011 if

Ritz furniture has a contribution margin ratio of 0.11. If fixed cost are $172,800 how man dollars of revenue must the company generate in order to reach the break-even point?

1 outline the monetary system used in this country2 how

1. Outline the monetary system used in this country. 2. How does the Federal Reserve increase the money supply? 3. How does the Treasury raise money when it has to borrow? 4. Explain the major factors that influence inte ...

Assignment pricing decisionsthis assignment will assess

Assignment: Pricing Decisions This assignment will assess competency 4. Develop a professional sales training and motivation program for an organization. Directions View the Chapter 19 - Pricing Concepts video. http://ww ...

1 why do researchers want the error variance in their data

1. Why do researchers want the error variance in their data to be small? 2. Why do researchers use meta-analysis?

1 what is a multiple baseline design and when are such

1. What is a multiple baseline design, and when are such designs typically used? 2. How do researchers analyze the data from single-case experiments? 3. In what areas have single-case experiments been primarily used?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro