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

How does culture influence the development process, How does culture influe...

How does culture influence the development process? Culture influences what is of value into a society and affects how individuals, communities and organisations react to modi

Actual and theoretical price adjustment, For any stock splits (if there wer...

For any stock splits (if there were any it will look like the screen below) compare the actual and theoretical price adjustment.  For example, on the day that a 2-for-1 split is ef

What are the characteristics of the informal sector, What are the character...

What are the characteristics of the informal sector? The characteristics of the informal sector comprise: • working for yourself quite than an employer, • Small scale ent

Eco/561, purely competitive firms increase total revenue by

purely competitive firms increase total revenue by

Explain the different types of unemployment that exist, QUESTION (a) "T...

QUESTION (a) "There is always an inverse relationship between price and quantity demanded of a good." Discuss. (b) Explain with appropriate diagram(s) the different factors

Marginal propensity to consume , Assume  the marginal propensity to consume...

Assume  the marginal propensity to consume (MPC) is 0.9. Starting from   equilibrium, investment demand enhances by 50. How much does equilibrium income enhance? Show the calcul

Help, Ask quethe monthly revenue of a certain comany is given by R=820p-7^2...

Ask quethe monthly revenue of a certain comany is given by R=820p-7^2p,where p is the price in dollars of the product the company manufacturers. at what price will the revenue be $

What is development process, What is development process? Development ...

What is development process? Development process: Development is measured through outcomes that are development occurs while key indicators of human well-being enhance. Th

Economics, Why does a production possibilities frontier with increasing opp...

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?

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