Business

Jeremiah Duarte

7 June, 12:53

Waters Corporation has a stock price of $20 a share. The stock's year-end dividend is expected to be $2 a share (D1 = $2.00). The stock's required rate of return is 15 percent and the stock's dividend is expected to grow at the same constant rate forever. What is the expected price of the stock seven years from now?

Select one:

A. $28

B. $53

C. $27

D. $23

E. $39

+2

Answers (1)

Know the Answer?

Not Sure About the Answer?

Get an answer to your question ✅ “Waters Corporation has a stock price of $20 a share. The stock's year-end dividend is expected to be $2 a share (D1 = $2.00). The stock's ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.

Search for Other Answers

You Might be Interested in

Which of the following best describes an enterprise system? Select one: a. It captures data from company transactions and other key events, and then updates the firm's records, which are maintained in electronic files or databases. b.

ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present value analysis.

A high-end clothing manufacturer has a policy to inspect each article of clothing before it is shipped to customers.

Strikes generally occur as a result of: A. the threat of a new league B. A need for consistency across contracts C. uncertainty D. An attempt to damage the other side

A company uses the retail method to estimate inventories. The following information is for the first six months of the current year: beginning inventory at cost and retail were $70,000 and $100,000 respectively, net purchases at cost and retail were

New Questions in Business

Which statement is false? A) Land is the primary factor of production used in the production of all goods and services. B) An entrepreneur combines all the factors of production. C) Growth in the economy shifts the PPC left.

A short-run phillips curve shows an inverse relationship between

Which of the following types of business usually has the fastest inventory turnover? furniture store hardware store store that sells consumer electronics grocery store

A Gantt chart is a horizontal bar chart that shows each work activity on a separate line with the bar placed from the early start date to the early finish date for each activity on a timescale. 1. True 2. False

You run a small auto service shop. Your fixed expenses per week are $1,000 and your average customer invoice is $500 with an associated marginal cost of $300. What is your weekly break-even quantity?