Ask Question
BusinessBusiness
2 September, 07:48

If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?

+4
Answers (1)
  1. 2 September, 10:37
    0
    The dividend will be $4.015

    Explanation:

    The given data is: Initial dividend given is = $3 and growth rate given is = 6%

    the following formula is used in order to calculate the dividend

    dividend at time 5 = d0 multiply with (1+growth rate) power 5

    = $3.00 multiply with (1+0.06) power 5

    =>$3.00 multiply (1.33822558)

    =>$4.015 (rounded to two decimals).

    Note : The dividend is the amount that is paid by the company to its shareholders. The amount of dividend may vary from year to year depending upon the profitability level of the company that it earned during the year.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5? ...” 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
In the government sector, there is a. nothing comparable to profit and loss that will weed out inefficient activities. b. nothing comparable to bankruptcy that will bring inefficient programs to a halt. c.
Answers (1)
What is required of licensees who are selling or buying a property for themselves?
Answers (1)
The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it
Answers (1)
Which one of the following statements is not true about statements of cash flows prepared according to U. S. GAAP? a. The operating section of the indirect method starts with the net income of the periodb.
Answers (1)
You are planning to place an ad in a local newspaper. The size of the ad is 5 inches long by 4 columns wide. The newspaper's rate per column inch is $18. How much will the ad cost?
Answers (1)
New Questions in Business
What is the Present Value of the following cash flows at an interest rate of 7% AER? A.) $900 received one year from now. B.) $900 received 10 years from now. C.) $900 received each year beginning 1 year from now and ending in 10 years. D.
Answers (1)
Which of the following statements is true? A. If a department head is ethical, then the entire department is ethical. B. Under the formal ethical code, police officers can accept gratuities from business owners as long as they follow specific rules.
Answers (1)
When discussing the balance of trade, which of the following is an umbrella statistic that encompasses the other three?
Answers (1)
Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $81,000; service cost, $18,600; interest cost, $5,600; benefits paid for the year, $9,600; ending PBO, $95,600;
Answers (1)
Tina Dooley, a salesperson, ordered this listing in the real estate section of the local phone directory: Tina Dooley, Real Estate Salesperson, Residential Property My Specialty." What additional information must be included
Answers (1)
Home » Business » If the current dividend (D0) is $3.00 and the growth rate is 6%. How much will the dividend be at Time 5?
Sign Up Forgot Password?