subject
Business, 04.07.2020 21:01 Zshotgun33

As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the company's expected growth rate to increase or decrease, thereby affecting the results of the valuation model. For companies in such situations, you would refer to the nonconstant growth model for the valuation of the company's stock. Consider the case of Hungry Whale Electronics Company: Hungry Whale Electronics Company (HWEC) just paid a dividend of $2.40 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16.00% over the next year. After the next year, though, Hungry whale's dividend is expected to grow at a constant rate of 3.20% per year. Complete the following table, assuming that the market is in equilibrium, and: Term Value . The risk-free rate (FRF) is 4.00% . The market risk premium (RPM) is 4.80%, Dividends one year from now (D1) Horizon Value (HV) Intrinsic Value and Hungry Whale's beta is 2.00 What is the expected dividend yield for Hungry Whale's stock today? A) 8.32% B) 11.45% C) 10.08% D) 10.40%

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 18:20
Which of the following housing decisions provides a person with both housing and an investment? a. selling a share in a cooperative. b. buying a single-family home. c. renting an apartment. d. subletting a condominium. 2b2t
Answers: 2
question
Business, 22.06.2019 05:00
Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.
Answers: 3
question
Business, 22.06.2019 23:10
Which of the following best explains the purpose of a strike? a. to pressure employers to increase the minimum wage. b. to make sure that producers don't make any profit. c. to get employers to submit to collective bargaining. d. to prevent employers from taking industrial action.
Answers: 2
question
Business, 22.06.2019 23:40
Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.
Answers: 3
You know the right answer?
As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconsta...
Questions
question
Mathematics, 19.08.2020 18:01
question
Mathematics, 19.08.2020 18:01
Questions on the website: 13722366