Mercier announces developments , Business Economics

Assignment Help:

Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 s share. The expected growth rate in dividends is 8 percent.

a. What is the needed rate of return on this stock?

b. Using your answer to (a), assume Mercier announces developments that should lead to dividend enhenaces of 10 percent annually. What will be the new value of Mercier's stock.

 

 


Related Discussions:- Mercier announces developments

What are social cohesion-social capital and social inclusion, What are soci...

What are social cohesion, social capital and social inclusion? Development economics importance the role of social capital, cohesion and inclusion into the process of developm

Statistical analysis of data, Q1 An important first step to the statistical...

Q1 An important first step to the statistical analysis of data is to "get to know your data".  The following tasks should contribute to this. (a)   To the right of the dataset c

Agriculture economics, A1. Given the following production function Level of...

A1. Given the following production function Level of fertilizer Level of maize 0 0 1 44.9 2 83.6 3 110.1 4 127.3 5 136.9 6 139.9 7 137.1 8 129.2 a) Calculate the APP, MPP and elas

Exception to law of demand, case study on diamond price and petrol price fo...

case study on diamond price and petrol price for exxception to the law of demand

Average, For the special case when firms are price takers, what is the rela...

For the special case when firms are price takers, what is the relation between total revenue, average revenue, marginal revenue and price?

What are the predictions of dependency theory, What are the predictions of ...

What are the predictions of dependency theory? The predictions of dependency theory: • DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplu

Write Your Message!

Captcha
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