107 819
Assignments Done
100%
Successfully Done
In March 2025
In March 2025
Your physics assignments can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Physics
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Math
Our experts will gladly share their knowledge and help you with programming projects. Keep up with the world’s newest programming trends.
Programming
Answer to Question #6134 in Economics of Enterprise for Lamarcus Streeter
Question #6134
4. Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company’s last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $26.77
b. $27.89
c. $29.05
d. $30.21
e. $31.42
a. $26.77
b. $27.89
c. $29.05
d. $30.21
e. $31.42
Expert's answer
a. $26.77
Pa = d0*(1+g/100)*100/(k - g) = 1,25*(1+25/100)*100/6 = 26.77
Pa = d0*(1+g/100)*100/(k - g) = 1,25*(1+25/100)*100/6 = 26.77
Learn more about our help with Assignments: Economics of Enterprise
-
![Help me with my assignment!]()
Who Can Help Me with My Assignment
There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
-
![How to finish assignment]()
How to Finish Assignments When You Can’t
Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
-
![Math Exams Study]()
How to Effectively Study for a Math Test
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
Comments
You're welcome. We are glad to be helpful. If you really liked our service please press like-button beside answer field. Thank you!
Thank you for help
Dear Joseph Questions in this section are answered for free.& If you have some short homework questions, minor tasks, etc. You can try it yourself and post your own questions. Enjoy!
This is fantastic. How much does it cost? I will like to contribute on this effort if the answer is correct.
Leave a comment