Given the information in the table,
Current dividend $6.00
Growth Rate in Dividends 2.50%
Required Return on Equity Rs 8.00%
According to the Gordon Growth Model, what is the $ amount of the
Capital Gains or Loss between periods 2 and 3 ?
we need to know price of year 3 and price of year 2 with the given information.
Price of year2 = current dividend*(1+growth rate)^3 / (required return - growth rate)
=> $6 *(1.025)^3 / (0.08-0.025)
=>6.46134375 / 0.055
=>$117.49.
price of year 3 = current dividend* (1+growth rate)^4 / (required return - growth rate)
=>6*(1.025)^4 / 0.055
=>6.62287734372/0.055
=>$120.42.
$ amount of capital gain between year 2 and year 3 = $120.42-117.49
=>$2.93
Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return...
Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 8.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3 ?
Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 8.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3 ? $2.84 $2.98 $2.94 $3.01
Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 8.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3 ? $3.01 $2.94 $2.98 $2.84
Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 8.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3 ? Group of answer choices $2.98 $2.84 $2.94 $3.01
Question 1 20 pts Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 8.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3? $3.01 $2.94 $2.84 $2.98
please answer
Question 1 20 pts Given the information in the table, Current dividend $6.00 Growth Rate in Dividends 2.50% Required Return on Equity Rs 4.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 1 and 2 ? $10.16 O $10.67 O $10.75 o $10.51
please answer
Question 1 20 pts Given the information in the table, Current dividend $5.00 Growth Rate in Dividends 3.50% Required Return on Equity Rs 6.00% According to the Gordon Growth Model, what is the $ amount of the Capital Gains or Loss between periods 2 and 3 ? $7.94 O $7.51 O $7.88 o $7.76
Given the information in the table, Current dividend $12.00 Growth Rate in Dividends 2% Required Return on Equity Rs 6% According to the Gordon Growth Model, what is the price of this stock in year 2 ?
Given the information in the table, Current dividend $15.00 Growth Rate in Dividends -2% Required Return on Equity (R) 6% . According to the Gordon Growth Model, what is the price of this stock today? A $183.75 B $186.63 C $177.75 D $188.04 please show work so I can see how negative 2% affects it differently
please answer
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