If the current price of Thaler-Made Furniture is $25 per share and next year's dividend is expected to be $1.75 per share, what is the required return if dividends are expected to grow 5% per year?

A) 24%
B) 12%
C) 32%
D) 14%
E) 2%


B

Business

You might also like to view...

Consider the regression equation y = a + bX. The portion of the equation that represents the variable rate is __________

Fill in the blank(s) with correct word

Business

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $ 2,300 Fees Earned 14,700 Depreciation Expense 1,300 Insurance Expense 200 Prepaid Insurance 4,800 Supplies 900 Supplies Expenses 3,800 Net income for the period is

A) $1,400 B) $9,400 C) $14,700 D) $7,100

Business

The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: Cash$1400? Accounts Receivable$950? Dividends 700? Common Stock 1175? Land 1000? Revenue 1000? Accounts Payable 550? Expense 650? Retained earnings 1975?     What is the amount of total assets that will be reported on the balance sheet as of December 31, Year 1?

A. $3350. B. $4350. C. $4050. D. $2400.

Business

One of the disadvantages of the payback method is that it ignores time value of money

Indicate whether the statement is true or false

Business