Compute required rate of return on johsntown stock

Reference no: EM13304585

Johnston Supply Corp stock is selling for $56. it's expected to pay a dividend of $4.00 at the end of the year. Dividends are expected to grow at a constant rate of 6.5% indefinitely. Compute the required rate of return on Johsntown's Corporation Stock.

A. 10.48%
B. 13.64%
C. 14.93%
D. 12.65%

Reference no: EM13304585

Questions Cloud

What is the amount of the semi annual interest payment : Halverson just issued $1000 par 20 year bonds. the bonds sold for $936 and pay interest semi annually. Investors require a rate of 7% on the bonds. What's the amount of the semi annual interest payment on the bonds?

Determine the lengths and bearings of sides of polygon : Determine the lengths and bearings of the sides of a closed polygon traverse whose corners have the following x and y coordinates: A(5000.00, 5000.00) B(5289.67, 5436.12) C(4884.96, 5354.54) D(4756.66, 5068.37)

What will be the maximum height of the tree : Assume that the water pressure at the bottom of a tree is -0.1 MPa and that the water pressure at the top of the tree is -1.5 MPa. What will be the maximum height of the tree

Compute departures and latitudes and linear misclosure : Compute departures and latitudes, linear misclosure, and relative precision for a five-sided, closed traverse. It is given that the aziumuth of AB is 74 degrees 31 minutes, 17 seconds, A = 105 degrees 13 minutes 14 seconds B = 92

Compute required rate of return on johsntown stock : Johnston Supply Corp stock is selling for $56. it's expected to pay a dividend of $4.00 at the end of the year. Dividends are expected to grow at a constant rate of 6.5% indefinitely. Compute the required rate of return on Johsntown's Corporation ..

Calculate steady state concentration of organic n into lake : Colette Lake has a surface area of 103 ha and a mean depth of 8 m. The pH of the water is 7.6. The lake receives surface water from a lake upstream, rainfall, and diffuse groundwater input. Atmospheric inorganic N deposition is insignificant.

How many loan payments must the company make : Your company has received a $50,000 loan from an industrial finance co. The annual payments are $6202.70. If the company is paying 9% interest per year, how many loan payments must the company make?

What will bling diamond cahs dividends be in seven years : Thereafter, dividends will grow at 7% per year. What will Bling Diamond's cahs dividends be in seven years?

How much must you invest today : You're trying to save to buy a new $170,000 Ferrari. If you believe that your mutual fund will achieve a 12% per year rate of return, and you want to buy the car for your birthday in 9 years, how much must you invest today?

User Account

All Pages