Industry reinvests of earnings in the firm

Reference no: EM1333271

Constant-Growth Model. A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15 percent also the industry reinvests 40 percent of earnings in the firm, what must be the discount rate?

Reference no: EM1333271

Questions Cloud

Protect an organization from legal issues : Human Resources - Can job analysis procedures can protect an organization from legal issues?

Elucidate what payments will you receive : If you buy the stock and plan to hold it for 3 years, Elucidate what payments will you receive. What is the present value of those payments? Compare your answer to (b).

Prepare a written proposal outlining a specific product : Prepare a written proposal outlining a specific product or service idea you have for Triangle Solutions

Calculate the level of excess supply : Suppose demand and supply conditions in the competitive market for unskilled labor

Industry reinvests of earnings in the firm : If the rate of return earned on reinvested funds is 15 percent also the industry reinvests 40 percent of earnings in the firm, what must be the discount rate.

Reasonable risk and unreasonable risk : Explain if there was a "reasonable risk" or "unreasonable risk" involved in this case. Was the plaintiff acting prudently? Explain.

Explain converting spoken words in digital text : Explain Converting spoken words in digital text and digitized voice message

Listing the name and salary of all employees : List the name and hours worked per week for each employee who works on the Reorganization project. Order the list by hours worked in explaning order and by last name within each amount of hours.

Explanation of how hr works with management : Explanation of how HR works with management - How does the department manager work with HR to ensure an accurate reflection of the skills and experience required through these three processes?

User Account

All Pages