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

r = 13.68%

Explanation:

We can use Gordon growth model to calculate the stock price.

P = Do x (1+g) / r - g

P: stock price (Given: $95)

Do: Last dividend paid ($5)

g: Dividend growth rate (8%)

r: required return (Missing value)

By inputting the number into the above equation, we have the following:

95 = 5 x 1.08 / (r - 0.08)

--> r = 13.68%

answer; /// i do believe that the above is (true)

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.