What is the market requiring as return on this company stock

Assignment Help Financial Accounting
Reference no: EM133025508

Question - The common stock of Average Corporation is selling for $10 a share and is expected to pay a dividend of $0.50 a share next year. If dividends are expected to grow at a constant rate of 4% indefinitely, what is the market requiring as a return on this company's stock?

A. 1.4%

B. 4.0%

C. 5.0%

D. 9.0%

Reference no: EM133025508

Questions Cloud

Evaluate the equity or fairness of large variances : Evaluate the equity or fairness of such large variances in the amount of money allocated to educate special needs students.
Examine the market segmentation : Explore the reference groups suitable for your selected target market. Use your learning to categorize these groups in reference to their impact on the target
What amount of cash will Dier Care receive : On October 16, Nauvoo Medical returned $5,300 of defective merchandise. What amount of cash will Dier Care receive
Calculate the incremental operating income : The variable portion of the manufacturing overhead is $5 per unit. Calculate the incremental operating income if the company accepts the special order
What is the market requiring as return on this company stock : If dividends are expected to grow at a constant rate of 4% indefinitely, what is the market requiring as a return on this company's stock
Business plan prepared for startup a coffee shop and bakery : Business Plan Prepared For Startup A Coffee Shop And Bakery.
How many units will be scheduled for production this year : The target for each year's ending inventory is 15,000 units. How many units will be scheduled for production this year
Businesses managing growing volumes of data : Do some Internet research on big data best practices. How are businesses managing their growing volumes of data
Employer brand attractiveness and perception : Any study or resources stated that apply Artificial intelligence to work with the staff in hotel can increase employer brand attractiveness and perception of va

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd