Amid the frenzy surrounding pokemon go, nintendo stock soared during mid-july 2016 reaching a high of $38.25 on july 18. on july 24, 2016, nintendo announced that it expected earnings per share to be $0.36 over the following year. as a result, analysts estimated the dividend per share to be $0.21 next year. we can estimate the expected return on nintendo stock using an asset pricing model such as the capm. suppose that the risk-free rate is 2.4% and that the expected return on the market is 6.4%.
using the discount rate calculated in part (a), calculate the value of a share of nintendo stock if it pays a dividend of $0.21 per share (each year) forever. (round your answer to nearest cents. for example, if your answer is $42.231, write 42.32.)

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answercontrol is returned to method c;