finace

16. Which of these three stock would you rather own if you rate of discount is 5%?
a. stock that currently earns $2 per share whose earnings are growing 3% each year.
b. stock that currently earns $1 per chare whose earnings are growing 4% each year.
c. sock that currently earns $5 per share whose earnings are growing 2% each year.

asked by Rick

Respond to this Question

First Name

Your Response

Similar Questions

  1. BUS 401

    Which of the following statments regarding the cost of preferred stock is true? a.It is typically found by solving for an annuity’s discount rate. b. It is tpically found by solving for an annuity's due's discount rate. C. It is
  2. Finance

    what is the value of a preferred stock when the dividend rate is 14% on a $100 value? the appropriate discount rate for a stock of this risk level is 12%
  3. managerial Economics

    If a stock is expected to pay an annual dividend of $20 forever, what Is the approximate present value of the stock, given that the discount Rate is 5%?
  4. Finance math

    Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what
  5. Finance

    To finanance a purchase a company will sell 10 year bonds paying 6.6% per year at the market price of $1062. Preferred stock paying a $2.05 dividend can be sold for 25.93. Common stock is cirrently seeling for 54.29 per share and
  6. Finance

    You purchase XYZ company's perpetual preferred stock, which pays a perpetual annual dividend of $8 per share. If the appropriate discount rate for this investment is 14%, what is the price of one share of stock? Thank You! 8/.14 =
  7. introduction to business

    The rate the feds charges members banks for short term loans is called: A.reserve requirement b. discount rate c. margin rate d. federal rate My answer is B Discount rate can someone please verify...thanks in advance
  8. principles of finance

    You are considering the of xyz company's perpetual preferred stock, which pays a perpetual divend of $8 per. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock? Thank you.
  9. investing

    new millenium company's stock sells at a P/E ratio of 21 times earnings. it is expected to pay dividends of $2 per share in each of the next 5 years and to generate an EPS of $5 i year 5. using the dividends-and-earnings model and
  10. Financing and Accounting

    How would I find the formula for these problems? Please help me.. I would really appreciate it.. thank you Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a
  11. finance (higher interest rate)

    A higher interest rate (discount rate) would? A. reduce the price of corporate bonds B. reduce the price of preferred stock C. reduce the price of common stock D. all of the above I remember reading about the relationship between

More Similar Questions