What would be the continuous growth

Assignment Help Accounting Basics
Reference no: EM133090450

Question - Dividend Valuation Approach - An analyst's forecast for a company's dividends for the next three years are: D1 = $8,800 D2 = $9,100 and D3 = $10,400. If the analyst uses an Re = 13% and g = 5% for the company, what would be the continuous growth (in dollars) for the company using the dividend approach model?

A. $94,956

B. $59,472

C. $120,796

D. $130,000

Reference no: EM133090450

Questions Cloud

Would you advise john to open his boxing gym : John uses a 12% discount rate. Would you advise John to open his boxing gym, or retire in his family farm immediately
Kind of ethical issue : The Gift You're an account executive with a multinational financial firm, and one of your biggest accounts is that of a shipping magnate in Greece. Several mont
Encourage the public to use public transportation : The second issue is that rail service is limited to 6 a.m. to midnight, typically 12 a.m. It is becoming a significant issue for night shift workers, such as re
Determine the cloud hosting service : The School of Business has signed an agreement with Microsoft that provides licensing for multiple Microsoft products. One specific package included in the agre
What would be the continuous growth : If the analyst uses an Re = 13% and g = 5% for the company, what would be the continuous growth for the company using the dividend approach model
Major ethical-corporate social responsibility issue : Discuss (Write an essay) on Meta (previously facebook), with a focus on its metaverse plans. What is the major ethical/Corporate Social Responsibility issue
Craft a research title for the topic : Craft a research title for the topic and discuss briefly the background of the proposed study through the template below.
What are the effects on users and advertisers : How does the focus on privacy benefit Apple's platform (ecosystem) and brand? What are the implication for Facebook's business model
Explain the general purpose of organizational missions : Explain the general purpose of organizational missions, culture statements, and goals and what these three things say about the way an organization should opera

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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