Share of stock paying a dividend

Assignment Help Business Economics

Reference no: EM131006421

1. How much would you pay for a share of stock paying a dividend ?(cash payout ?C) of ?$4 to be paid in one? year, a known selling price in one year ?(?P) of ?$50?, and expected return ?(R) of similar assets of 2?%?

2. Compute the price of a share of stock that pays a ?$1.50 per year dividend and that you expect to be able to sell in one year for ?$20, assuming you require a 10?% return.

Reference no: EM131006421

Questions Cloud

Problem regarding the plowmasters : PlowMasters is a locally owned and operated snow removal business. PlowMasters provides residential and commercial snow removal for clients throughout a large metropolitan area. Typical services include drive- way and walkway snow removal, as well..

Time inconsistency and availability heuristic : Eric tries to eat more healthfully by eliminating cookies, donuts, and similar snacks from his diet. Every day at work, however, co-workers bring in these treats and Eric succumbs to temptation. Which of the following concepts would behavioral econom..

Interest is paid semiannually on july 31 and january 31 : Prepare the journal entry to record their issuance by Strauss-Lombardi on February 1, 2011.

Discovery of natural resources-population and production : Mill's answer to number four is explained because of progress in: The solution to a commercial crisis is, according to Mill: According to Mill in the reading on Interest, interest pays the owner of capital for his: Discovery of natural resources. Pop..

Share of stock paying a dividend : How much would you pay for a share of stock paying a dividend ?(cash payout ?C) of ?$4 to be paid in one? year, a known selling price in one year ?(?P) of ?$50?, and expected return ?(R) of similar assets of 2?%? Compute the price of a share of stock..

Is the phillips curve really dead : In the 1997-99 period many self-proclaimed economists claimed that the Phillips Curve was finally dead. Apparently, the “old macro rules” didn't work anymore, possibly because the “new economy” had arrived. Think about the third equation in the model..

Determine next year percentage and cost depletion amounts : A new study to appraise mine re- serves indicates that no more than 800,000 tons of salable coal remains. Determine next year's percentage and cost depletion amounts, if estimated gross income is expected to be between $6.125 and $8.50 million on ..

Prepare an amortization schedule that determines interest : Prepare an amortization schedule that determines interest at the effective rate each period.

What is the coordination failure is in this model : Macroeconomic models with demand-determined output are usually built on the assumption that goods (or labour) markets do not clear because prices (or wages) do not instantly adjust in response to various shocks. Explain intuitively why any individual..

User Account

All Pages