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

1 why must researchers use reliable measures2 why is it

1. Why must researchers use reliable measures? 2. Why is it virtually impossible to eliminate all measurement error from the measures we use in research? 3. What is the relationship between the reliability of a measure a ...

What is the purpose of risk management industry standards

What is the purpose of risk management industry standards? What responsibilities does senior management assume in a risk management system? What is the most important component of an effective risk management system? Bri ...

You buy a stock for 35 per share one year later you receive

You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your capital gain or loss yi ...

Assume a linear velocity distribution and a linear

Assume a linear velocity distribution and a linear concentration profile in the laminar boundary layer over a flat plate. Apply the boundary conditions for a laminar boundary layer and evaluate the velocity and concentra ...

Describe the common definitions of inflows of cash and

Describe the common definitions of "inflows of cash" and "outflows of cash" used by analysts to classify certain balance sheet changes and income statement values. What three categories of cash flow are used in the state ...

1 what are the major issues related to global tampd2 how

1. What are the major issues related to global T&D? 2. How can the effectiveness of global virtual teams be improved? 3. How can global leadership be developed? 4. How does one acquire a global mind-set? 5. What is the r ...

Read and study the following experimental research

Read and study the following experimental research designs. For each: a. Identify and provide a label for the independent and dependent variables. b. Indicate the number of levels in the independent variable, and provide ...

Name at least four factors which can reduce in-service

Name at least four factors which can reduce in-service clamping force ? Name at least three factors which can be prevented or at least reduced by sufficient in-service clamping force ? Name at least four factors which de ...

1 how do the various labor standards promulgated by

1. How do the various labor standards promulgated by international organizations affect the MNE? 2. How do EU directives (such as those developed in the area of HR) impact member states and MNEs? 3. How do US extraterrit ...

1 explain the risk premium on a bond2 explain what is meant

1. Explain the risk premium on a bond. 2. Explain what is meant by the risk-return trade-off. 3. Explain how the yield curve can assist bond investors.

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen