A stock is expected to pay a dividend of $1.25 at the end of the year (i.e., D1 = $1.25), and it should continue to grow at a constant rate of 4% a year. If its required return is 15%, what is the stock's expected price 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $ 32.22

Q: do you have the answer in a different format using equations

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: Please elaborate on the following: 1. Scarcity 2. Divisibility 3. Portability

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: What do you mean by put option? Explain in 2 - 3 sentences

A: A Put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: Describe the differences between a formula and a function?

A: A formula is an equation or expression that, when entered into a spreadsheet or other application,…

Q: Can you please step this out line by line (not all in one line) and state the formula used

A: The concept of time value of money states that worth of money changes with passage of time. This is…

Q: 8. If money is worth (.06, m = 4), find the present value of a perpetuity $1000, paid semi-annually,…

A: Present value of perpetuity is the value of an asset whose cash flow is received forever.

Q: Determine the so-called Theta of the Black-Scholes (BS) Formula, i.e. OBS

A: For European Call options (non dividend paying stocks) theta to be calculated as follows using BSM.…

Q: Q1\ What are the reasons for a transaction to fail? What are the difference between more common…

A: Transaction can be defined as the instance of buying or selling something. Transactions are…

Q: this is wrong. Answer is B

A: A dividend is defined as the part of the profit which is not distributed by the company among the…

Q: Req C is incorrect.

A: Equivalent unit of production is multiplied by cost per equivalent unit to compute the assignment of…

Q: elated factor can (pick the best) Select one: a. reverse an association

A: The answer has been mentioned below.

Q: Could a CMO exist without a Z class

A: Introduction: A CMO is a form of mortgage-backed securities in which many different types of…

Q: plain further on your solution? Figures dont seem to match the figures in the question

A: NPV and payback period are capital budgeting tools that guide to decide on whether the capital…

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: How do I add an excersise to my qbw?

A: Exercise can add to QBW by open up the exercise that we wish to add to our workout by going to…

Q: Is DDM and CAPM suppose to be the same numbe

A: There are many ways to do valuation of stock one is DDM and other is CAPM these are two important…

Q: Explain why the order makes a difference in one or more of the three allocation methods - Direct,…

A: The order makes a difference in all three allocation methods. In the Direct method, the order of…

Q: What is X? (Give answer as a decimal)

A: Given information is: Growth rate of money supply = 0.04 Growth rate of velocity = 0.01

Q: Why option A is incorrect?

A: revenue is generated by the business whenever  goods or services are sold by the business.this leads…

Q: Where is the answer for number 4 and 5 answe

A: The following types of Financial statements as follows under:- Balance Sheet. Income Statement.…

Q: can step one be structure differently using P=p( r/n)/1-(1+r/n)

A: Here, The interest rate is r. The maturity period is n. The compounding frequency is m.

Q: For what values of x is f(x) NOI differentidue:

A: At x=1 the given function is NOT DIFFERENTIABLE.  Because, at x=1 the value of the function is…

Q: It is not particularly important what allocation base is used in calculating the POHR as long as it…

A: Consistency in the application of the allocation base is indeed crucial when calculating the…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: where is the rest of teh answers

A: 1. Income Statement - An income Statement is a financial statement that includes revenue earned and…

Q: Project b npv is incorrect. MIRR is wrong for A and B.

A:

Q: 4. Consider your responses to 3a through 3d. Does it look like there is the potential for…

A:

Q: confused on how the number for D is calculated

A: Bad debt is calculated on the value of sales receivable during the period.Bad debt is an expense…

Q: =FV(i, N, 0, P) =PV(i, N, 0, F) =FV(i, N, A) =PMT(i, N, 0, F)

A: Calculate value of fees for 18 to 22 at 18 as below: Resultant Table: Hence, value of fees at 18…

Q: How to calculate r value

A: The interest rate: The rate that is used to compute the simple or compound interest is known as the…

Q: A $385,000 house is to be purchased for 25% down and monthly payments of $1200 for as long as…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Why is this formula very important F = P( I + i)?

A: Time value of money (TVM) The thought cash you at present have would, later on, be worth more than a…

Q: part b is incorrect. Can you rework it?

A: Here,Quarter Dividend is $1.50Growth Rate is 6.25%Required Return is 9%Quarterly Required Return is…