Mercier announces developments , Business Economics

Assignment Help:

Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 s share. The expected growth rate in dividends is 8 percent.

a. What is the needed rate of return on this stock?

b. Using your answer to (a), assume Mercier announces developments that should lead to dividend enhenaces of 10 percent annually. What will be the new value of Mercier's stock.

 

 


Related Discussions:- Mercier announces developments

Market analysis, The Australian government administers two programs that af...

The Australian government administers two programs that affect the market for cigarettes. First, media campaigns and labelling requirements aimed at making public aware of the dan

Explain about the term traditional economy, Explain about the term Traditio...

Explain about the term Traditional Economy. Traditional economy: It is where decisions regarding what, how and for whom to produce are based onto tradition and custom. A

Does aid improve development, Does aid improve development? Aid improv...

Does aid improve development? Aid improves development as: • Aid is utilized to increase productive capacity and the advantages of resultant growth is extensively spread an

Business policy & environment, various approaches followed by FMCG companie...

various approaches followed by FMCG companies in test marketing

Monopolistic Competition, Describe the characteristics of Monopolistic Comp...

Describe the characteristics of Monopolistic Competition

Pricing strategy, You own a small retail business that produces a product t...

You own a small retail business that produces a product that is slightly different from that of your many competitors. Your firm is currently making an economic profit. The absolut

Theory of supply, i want information about the theory of supply

i want information about the theory of supply

TR AR MR, WHAT are relationship between them showthese relitionship with th...

WHAT are relationship between them showthese relitionship with the help of digram also state relitionship between AR MR & TR.

Write Your Message!

Captcha
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