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

Who will sell and buy permits, There are three industrial firms in a quaint...

There are three industrial firms in a quaint town of South Orange where the municipal government wants to reduce pollution to 120 units from uncontrolled level of 210 units. Three

What are the economic reasons for protectionism, QUESTION (a) Discuss w...

QUESTION (a) Discuss whether international trade between countries is always beneficial. (b) What are the economic reasons for protectionism? (c) Does the National Income

What are the factors of the economic sectors, What are the factors of the e...

What are the factors of the economic sectors? The factors of the economic sectors: • Primary sector including natural resources as like agriculture, fishing, quarrying minin

What is factor endowment problem, What is factor endowment problem? F...

What is factor endowment problem? Factor endowment Problem: Several LDCs have a poor factor endowment than productivity and incomes both are very low according to world

What is success effectiveness of multi-national companies, What is the succ...

What is the success effectiveness of multi-national companies (transnationals) in the promotion of development? TNC FDI success into promoting development: • Introduces mode

Fiscal and monitory olicy, Assess the impact of fiscal and monetory policy ...

Assess the impact of fiscal and monetory policy on business organisations and their activities

How does structural adjustment programmes assist development, How does Stru...

How does Structural Adjustment Programmes/Poverty Reduction Strategies assist development? Structural Adjustment Programmes (SAPs) /Poverty Reduction Strategies (PRS) are an ef

Status of the economy and gdp , • Although the country produced several typ...

• Although the country produced several types of commodities (goods and services) in the year 2002, but this country's Central Statistics Office has grouped such commodities into f

Currency speculators harm for less developed countries, How do currency spe...

How do currency speculators harm for Less Developed Countries? Private capital inflows can be short term and speculative. Speculators shift funds in a Less Developed Countries

Investments - policy to overcome the recession, If the Government decreases...

If the Government decreases the interest rates on capital goods such as new plant and equipment and building. Investment also include spending on working capital such as stocks of

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