Please answer all questions with explanations (a-f)thx P7-3 (similar to)E Question HelpSinging Fish Fine Foods has a current annual cash dividend policy of $3.50. The price of the stock is set to yield a return of 10%. What is the price of this stock ifthe dividend will be paida for 12 years?b. for 16 years?c. for 42 years?d. for 50 years?e. for 100 years?f. forever?a What is the price of this stock if the dividend will be paid for 12 years?(Round to the nearest cent.)Enter your answer in the answer box and then click Check Answer.Check AnswerpartsremainingClear AllCopyright © 2020 Pearson Education Inc. All rights reserved. Terms of Use I Privacy Policy I Permissions I Contact UsASUSDIICe2$%&@84yefg.SnCValt

As per the companies guidelines, we can also only provide the first three subparts. Please share the remaining parts in another question. The price of the stock is computed as follows: Price =Dividend ×(1 - 1(1+Rate)^Time )Rate Part a: Where, Dividend = $3.50 Time = 12 Rate = 10% Price =$3.50 ×(1 - 1(1+10%)^12 )10% = $3.50 ×(1 - 1(1.10)^12 )10% =$3.50 × (1 - 13.138428376721 )10% = $3.50 ×(1- 0.31863081771)10% = $3.50 ×6.8136918228 = $23.847921 The price of a stock after 12 years is $23.8479 Part b: Time period = 16 years Price =$3.50 ×(1 - 1(1+10%)^16 )10% =$3.50 × (1 - 14.594972986357216)10% = $3.50 ×(1- 0.2176291357901487)10% = $3.50 ×7.8237086420985 = $27.38298024 The price of a stock after 12 years is $27.382980 Part c: Time period = 42 years Price =$3.50 ×(1 - 1(1+10%)^42 )10% =$3.50 × (1 - 154.76369923749290168512)10% = $3.50 ×(1- 0.018260271200148755)10% = $3.50 ×9.81739728799851245 = $34.360890507994793575 The price of a stock after 42 years is $34.360890

Answered: Singing Fish Fine Foods has a current…

Essentials Of Investments

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Chapter1: Investments: Background And Issues

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Singing Fish Fine Foods has a current annual cash dividend policy of $3.50. The price of the stock is set to yield a retum of 10%. What is the price of this stock if the dividend will be paid a for 12 years? b. for 16 years? c. for 42 years?