Business, 08.04.2020 01:37 Maxwell2539

SCI just paid a dividend ( D0 ) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return ( rs ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is per share.

Which of the following statements is true about the constant growth model?

a. The constant growth model can be used if a stock’s expected constant growth rate is less than its required return.

b. The constant growth model can be used if a stock’s expected constant growth rate is more than its required return.

Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.:

• If SCI’s stock is in equilibrium, the current expected dividend yield on the stock will be per share.

• SCI’s expected stock price one year from today will be per share.

• If SCI’s stock is in equilibrium, the current expected capital gains yield on SCI’s stock will be .

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 16:50

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

Answers: 2

Answer

Business, 21.06.2019 22:30

What is the connection between digital transformation and customer experience

Answers: 2

Answer

Business, 22.06.2019 13:40

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Answers: 1

Answer

Business, 22.06.2019 15:40

Rachel died in 2014 and her executor is finalizing her estate tax return. the executor has determined that rachel’s adjusted gross estate is $10,120,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. using 2014 rates, calculate the estate tax liability for rachel’s estate.

Answers: 1

Answer

You know the right answer?

SCI just paid a dividend ( D0 ) of $3.12 per share, and its annual dividend is expected to grow at a...

Questions