Ted has 10 shares of Grand Company. Based on the company's dividend policy, Ted will receive a total of $450 a year in perpetuity. What is the value of each share if the appropriate discount rate is 8 percent?
What will be an ideal response?
Dividend per share = $450 / 10 = $45
P = D / r = 45 / 0.08 = $562.50
You might also like to view...
Product scheduling and worker assignments are examples of forecasted activities in ______ decision-making.
A. operational B. tactical C. strategic D. functional
If multiple triggers exist on a table, there is no guarantee about the order in which the triggers will be fired.
Answer the following statement true (T) or false (F)
____ is concerned with doing the activity right the first time it is performed
A) Time B) Efficiency C) Quality D) Velocity E) none of these
The main focus of a marketing information system is on
A. the coordination of external information sources. B. classifying data into the proper information categories. C. data storage and retrieval. D. the accurate maintenance of inventory levels. E. gathering information on competitive activity.