subject
Business, 17.06.2021 17:10 briannalv0814

JBT company just paid a dividend of $3. Dividends are expected to grow at a constant rate of 3% forever, and the required return for the company is 14%. You buy the stock at these conditions. One year later the company pays D1 as expected and then immediately announces news about the company. Because of the new information, investors suddenly expect the constant growth rate in the stock will be 6%. What is your rate of return on this investment if you sell the shares after the news is announced?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 15:30, Jessicadiaz8602
Which of the following statements accurately describes how costs and benefits are calculated?
Answers: 3
image
Business, 21.06.2019 19:20, justintisdale95
Which of the following areas provides residents with close access to high-paying jobs and cultural attractions? a. the suburbs b. exurbs c. rural areas d. the city 2b2t
Answers: 3
image
Business, 22.06.2019 03:00, plug30
Journalize the following transactions that occurred in september 2015 for aquamarines. no explanations are needed. identify each accounts payable and accounts receivable with the vendor or customer name. sep. 3 purchased merchandise inventory on account from shallin wholesalers, $5,000. terms 1/15, n/eom, fob shipping point. 4 paid freight bill of $80 on september 3 purchase. 4 purchased merchandise inventory for cash of $1,700. 6 returned $500 of inventory from september 3 purchase. 8 sold merchandise inventory to hermosa company, $6,000, on account. terms 2/15, n/35. cost of goods, $2,640. 9 purchased merchandise inventory on account from thomas wholesalers, $8,000. terms 2/10, n/30, fob destination. 10 made payment to shallin wholesalers for goods purchased on september 3, less return and discount. 12 received payment from hermosa company, less discount. 13 after negotiations, received a $200 allowance from thomas wholesalers. 15 sold merchandise inventory to jordan company, $2,500, on account. terms 1/10, n/eom. cost of goods, $1,050. 22 made payment, less allowance, to thomas wholesalers for goods purchased on september 9. 23 jordan company returned $400 of the merchandise sold on september 15. cost of goods, $160. 25 sold merchandise inventory to smithsons for $1,100 on account that cost $400. terms of 2/10, n/30 were offered, fob shipping point. as a courtesy to smithsons, $75 of freight was added to the invoice for which cash was paid by aquamarines. 26 after negotiations, granted a $100 allowance to smithsons for merchandise purchased on september 25. 29 received payment from smithsons, less allowance and discount. 30 received payment from jordan company, less return.
Answers: 2
image
Business, 22.06.2019 13:10, jameahkitty123
bradford, inc., expects to sell 9,000 ceramic vases for $21 each. direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase. the following inventory levels apply to 2019: beginning inventory ending inventory direct materials 3,000 units 3,000 units work-in-process inventory 0 units 0 units finished goods inventory 300 units 500 units what are the 2019 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?
Answers: 2
You know the right answer?
JBT company just paid a dividend of $3. Dividends are expected to grow at a constant rate of 3% fore...

Questions in other subjects: