The company will pay the constant dividend of 8year forever

Assignment Help Microeconomics
Reference no: EM13388426

Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $8/year forever. If you require 18 percent rate of return on investments in this risk class, how much is this stock worth to you?

A. $37.77

B. $55.99

C. $45.68

D. $50.50

E. $41.46

F. $34.54

Reference no: EM13388426

Questions Cloud

Describe differences in how mcdonaldrsquos should handle : 1q. getting franchise to adopt the online ordering system is a major challenge. what techniques would you use to
Paul works is the car sales director at texas car : paul works is the car sales director at texas car dealership. oftentimes he takes customers and vendors out to lunch as
How many companies or products and services can you : 1. what is the impact of 247 digital media on issue monitoring managing and reporting on pr planning?2. how many
For the purposes of this exercise assume the following data : please complete the following for joersquos fly-by-night oil company whose financial statements are shown belowbull
The company will pay the constant dividend of 8year forever : sanaponic inc. will pay a dividend of 6 for each of the next 3 years 8 for each of the years 4-7 and 10 for the years
Recognize three methods for promoting work-life balance for : identify three techniques for promoting work-life balance for employees working away from home.considering the
What is the key to customer retention and what is the zone : 1q. given the commoditized nature of many markets today does customer relationship management and associated focus on
Masson corporation needs to raise 500000 for 1 year to : mcdowell industries sells on terms of 310 net 30. total sales for the year are 912500. forty percent of customers pay
Why would an employee with 12 years seniority in the paint : 1. what role does an arbitrator fill? why are they needed?2. why would an employee with 12 years seniority in the paint

Reviews

Write a Review

Microeconomics Questions & Answers

  Determining nash equilibrium strategies

Think that the following entry game. Here, company B is an existing company in the market, and company A is a potential entrant. Company A must decide whether to enter the market or stay out of the market.

  What is the expected value of each lottery

utility if a function of income (I), given by: \(U = 101\) as long as I is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with ce..

  Donate a large amount of money for student scholarships

A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at ..

  What does economics have to say about global warming

Using concepts used just in Microeconomics(and ignoring any that you might think relevant from Macroeconomics), what does economics have to say about global warming. Is the lesser role for he market and of competition in China.

  Compare the political scientists view of government

Compare the political scientist's view of government and economic policymaking and the Public Choice conception of politicians, bureaucrats and special interest groups in the political process. Which do you consider to be more realistic for unders..

  Explain cases of iso-cost curves

Draw two hypothetical iso-cost curves: one with annual leasing cost per vehicle being relatively inexpensive to the annual salary per mechanics, and another with annual leasing cost per vehicle being more expensive to the annual salary of mechanic..

  Question about supply and demand curves

In 2005, hogs in the US were selling for $67 each, down from $75 a year ago. This was primarily due to fact that supply had raise during the period to 1.8 million hogs per week.

  Who can produce any linear combination of chickens

Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes

  To derive the marginal cost (mc) or average total cost (atc)

For the total variable cost (TVC), draw a positive total fixed cost (TFC) and total cost (TC) curves. Then derive the associated marginal cost (MC), average total cost (ATC), average variable (AVC).

  Determine the equilibrium price and quantity

Calculate the equilibrium price and quantity. Sketch the supply and demand curves on a graph indicating the equilibrium.

  1 if the economy is to have significant built-in stability

1. if the economy is to have significant built-in stability then when real gdp increases the tax revenues shoulda. fall

  Various economic decision makers exist within an economic

Various economic decision makers exist within an economic system. List and briefly discuss the various role players in the economy.There are four role players

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd