Question

**Which is more important to the estimated value of the
stock, the short-term or long-term growth rate in dividends?
Why?**

Answer #1

2. (a) Are stock prices affected more by long-term or short-term
performance? Explain.
(b) A stock is expected to pay a dividend of RM2 at the end of
the year. The required rate of return is rs = 12%. What would the
stock’s price be if the growth rate were 4%? What would the stock’s
price be if the growth rate were 0%?
3. If D0 = RM4.00, rs = 9%, and g = 5% for a constant growth
stock,...

Determine whether stock prices are affected more by long-term or
short-term performance. Provide an example of the effect that
supports your claim.

What are the most important short-term and long-term effects of
divorce on children?

All else being the same, which has more interest risk, a
long-term bond or a short term bond?
What about a low coupon bond compared to a high coupon bond?
what about a long-term, high coupon bond compared to a
short-term, low coupon bond?
Type answers please!

In 2019, Rosalva sold stock considered short-term for a gain of
$985 and stock considered long-term for a loss of $3,940. She also
had a $3,690 short-term loss carryover from 2018 and a $1,395
long-term loss carryover from 2018.
Required:
What amount will be shown as a short-term gain (loss) for
2019?
What amount will be shown as a long-term gain (loss) for
2019?
How much of the loss is deductible in 2019?
What is the amount of long-term carryover...

"If the short-term own price elasticity for gasoline is
estimated to be -0.6, then long-term own price elasticity is
expected to be"
between -0.6 and negative infinity
between 0 and -0.6.
-0.6.
none of the above.

7. Constant growth rates
One of the most important components of stock valuation is a
firm’s estimated growth rate. Financial statements provide the
information needed to estimate the growth rate.
Consider this case:
Robert Gillman, an equity research analyst at Gillman Advisors,
believes in efficient markets. He has been following the mining
industry for the past 10 years and needs to determine the constant
growth rate that he should use while valuing Pan Asia Mining
Co.
Robert has the following...

(1) Which of the following workers are more likely to experience
long-term or short-term unemployment? Explain Answer.
a. A construction worker in Florida who is laid off because of a
tropical storm.
b. A skilled welder who is laid off because Ford’s Claycomo,
Missouri Assembly Plant has automated its assembly line.

You have found a stock that just paid a dividend of $1.87 and
your have a required return of 11.1%. The short-term growth rate
for this stock's dividends is found to be 8.3% and the long-term
growth rate is estimated to be 2.46%. You think that it may take 18
years for the dividend growth rate to gradually decline to this
level, but you want to calculate the firms intrinsic value with
these assumptions. What is the estimated intrinsic value...

Grf
dividends are expected to have a 20 percent short term growth rate
for the next four years.
beginning in year 5, the growth rate is expected to drop to 7
percent per year and last indefinately.
A. if grf paid a $3 dividend (div 0) and the appropriate
discount rate is 15%, then what is the price of a share of
Grf?
B. if you know that the short term return of a new investment
is 18%, what should...

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