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

What is the social capital, What is the social capital? Social Capita...

What is the social capital? Social Capital: Social capital is related with Putnam: Social capital considers to as features of social life as networks, norms and trust whi

Di, Disadvantages of globalisation

Disadvantages of globalisation

Types of transaction on the capital account, Types of Transaction on the Ca...

Types of Transaction on the Capital Account are stated below: It is useful to recall the basic types of transactions recorded on the capital account: foreign portfolio investme

Scarcity, explain the role scarcity of resources plays in economic decision...

explain the role scarcity of resources plays in economic decision making

What are the predictions of lewis, What are the predictions of Lewis? ...

What are the predictions of Lewis? For Lewis, Harrod Domar is right to emphasise the task of savings and investment although structural change and a new industrial sector are

Describe how your plan works for each of the residents , A university has ...

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individua

Differentiate value management and value engineering, Describe the differen...

Describe the difference between value management and value engineering. Value Engineering: It is concerned all along with determining the cheapest method of accomplishing

Present value or worth of this bond, Suppose a $1,000 face value bond has a...

Suppose a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-yearly, and has an eight-year life. If investors are willing to take a 10.25 percent rate of r

Regional products integration in retail stores, How do i come up with a pro...

How do i come up with a project based on the above topic

Cost of production of a firm in the long run, Question 1: (a) Explain,...

Question 1: (a) Explain, giving examples, the law of diminishing returns, clearly bringing out the relationship between cost curves and product curves in the short run. (

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