107 817
Assignments Done
100%
Successfully Done
In February 2025
In February 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 #51318 in Finance for mohammed abdu
Question #51318
The price of Dwayne Corporation stock is expected to be RM68 in 5 years. Dividends
are anticipated to increase at an annual rate of 10 percent from the most recent
dividend of RM1.00. If your required rate of return is 15 percent, how much are you
willing to pay for Dwayne stock now?
are anticipated to increase at an annual rate of 10 percent from the most recent
dividend of RM1.00. If your required rate of return is 15 percent, how much are you
willing to pay for Dwayne stock now?
Expert's answer
The price of Dwayne Corporation stock is expected to be RM68 in 5 years. g = 10%, div0 = RM1.00, r = 15%. The formula for the present value of a stock with constant growth is the estimated dividends to be paid divided by the difference between the required rate of return and the growth rate.
P = div0/(r - g) = 1/(0.15 - 0.1) = RM20.
P = div0/(r - g) = 1/(0.15 - 0.1) = RM20.
Learn more about our help with Assignments: Finance
Comments
Leave a comment