SlideShare a Scribd company logo
C Corporation net income this year is $800,000. The company generally retains 25% of net
income for reinvestment. The company's common stock currently has a book value of
$4,000,000. They just paid a dividend of $2.17, and the required rate of return on this stock is
11%. Compute the value of this stock if dividends are expected to continue growing indefinitely
at the company's sustainable growth rate.

More Related Content

More from info189835

California condors (Gymnogyps californianus) are listed on the IUCN .pdf
California condors (Gymnogyps californianus) are listed on the IUCN .pdfCalifornia condors (Gymnogyps californianus) are listed on the IUCN .pdf
California condors (Gymnogyps californianus) are listed on the IUCN .pdf
info189835
 
California continues to face a water shortage. The quantity of water.pdf
California continues to face a water shortage. The quantity of water.pdfCalifornia continues to face a water shortage. The quantity of water.pdf
California continues to face a water shortage. The quantity of water.pdf
info189835
 
Calculate the various ratios based on the following informationCa.pdf
Calculate the various ratios based on the following informationCa.pdfCalculate the various ratios based on the following informationCa.pdf
Calculate the various ratios based on the following informationCa.pdf
info189835
 
calculate the return on assets calculate the return on equity ca.pdf
calculate the return on assets calculate the return on equity ca.pdfcalculate the return on assets calculate the return on equity ca.pdf
calculate the return on assets calculate the return on equity ca.pdf
info189835
 
Calculate the frequency of alleles A and B for the two populations s.pdf
Calculate the frequency of alleles A and B for the two populations s.pdfCalculate the frequency of alleles A and B for the two populations s.pdf
Calculate the frequency of alleles A and B for the two populations s.pdf
info189835
 
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdfCalculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
info189835
 
Calculate the of total (portfolio weight) for eachStock A pr.pdf
Calculate the  of total (portfolio weight) for eachStock A pr.pdfCalculate the  of total (portfolio weight) for eachStock A pr.pdf
Calculate the of total (portfolio weight) for eachStock A pr.pdf
info189835
 
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdfCalculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
info189835
 
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdfCada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
info189835
 
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdfCada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
info189835
 
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdfC coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
info189835
 
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdfC++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
info189835
 
C++ help finish my code Topics class definitions, arrays of objec.pdf
C++ help finish my code Topics class definitions, arrays of objec.pdfC++ help finish my code Topics class definitions, arrays of objec.pdf
C++ help finish my code Topics class definitions, arrays of objec.pdf
info189835
 
C++ help !!!!Sally wants to write a program to help with her kee.pdf
C++ help !!!!Sally wants to write a program to help with her kee.pdfC++ help !!!!Sally wants to write a program to help with her kee.pdf
C++ help !!!!Sally wants to write a program to help with her kee.pdf
info189835
 
C++ 10.14 LAB Book information (overriding member functions)Given.pdf
C++ 10.14 LAB Book information (overriding member functions)Given.pdfC++ 10.14 LAB Book information (overriding member functions)Given.pdf
C++ 10.14 LAB Book information (overriding member functions)Given.pdf
info189835
 
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdfC(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
info189835
 
By answering the following question with references1. Which p.pdf
By answering the following question with references1. Which p.pdfBy answering the following question with references1. Which p.pdf
By answering the following question with references1. Which p.pdf
info189835
 
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdfBUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
info189835
 
C programming languageHello i currently have this code and it is s.pdf
C programming languageHello i currently have this code and it is s.pdfC programming languageHello i currently have this code and it is s.pdf
C programming languageHello i currently have this code and it is s.pdf
info189835
 
C programming languageHello i am hoping to get some help understa.pdf
C programming languageHello i am hoping to get some help understa.pdfC programming languageHello i am hoping to get some help understa.pdf
C programming languageHello i am hoping to get some help understa.pdf
info189835
 

More from info189835 (20)

California condors (Gymnogyps californianus) are listed on the IUCN .pdf
California condors (Gymnogyps californianus) are listed on the IUCN .pdfCalifornia condors (Gymnogyps californianus) are listed on the IUCN .pdf
California condors (Gymnogyps californianus) are listed on the IUCN .pdf
 
California continues to face a water shortage. The quantity of water.pdf
California continues to face a water shortage. The quantity of water.pdfCalifornia continues to face a water shortage. The quantity of water.pdf
California continues to face a water shortage. The quantity of water.pdf
 
Calculate the various ratios based on the following informationCa.pdf
Calculate the various ratios based on the following informationCa.pdfCalculate the various ratios based on the following informationCa.pdf
Calculate the various ratios based on the following informationCa.pdf
 
calculate the return on assets calculate the return on equity ca.pdf
calculate the return on assets calculate the return on equity ca.pdfcalculate the return on assets calculate the return on equity ca.pdf
calculate the return on assets calculate the return on equity ca.pdf
 
Calculate the frequency of alleles A and B for the two populations s.pdf
Calculate the frequency of alleles A and B for the two populations s.pdfCalculate the frequency of alleles A and B for the two populations s.pdf
Calculate the frequency of alleles A and B for the two populations s.pdf
 
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdfCalculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
Calculate the Earnings Per Share (EPS) and Dividends Per Share (DPS).pdf
 
Calculate the of total (portfolio weight) for eachStock A pr.pdf
Calculate the  of total (portfolio weight) for eachStock A pr.pdfCalculate the  of total (portfolio weight) for eachStock A pr.pdf
Calculate the of total (portfolio weight) for eachStock A pr.pdf
 
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdfCalculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
Calculate R2. (Round your answer to 4 decimal places.)Moviegoer Sp.pdf
 
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdfCada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
Cada vez es m�s dif�cil mantenerse al d�a con los problemas tecnol�g.pdf
 
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdfCada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
Cada una de las siguientes cuentas se reporta como pasivo a largo pl.pdf
 
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdfC coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
C coding into MIPS coding (Make sure this code works on Qtmips) Ho.pdf
 
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdfC++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
C++ help finish my code Phase 1 - input phase. Main reads the fi.pdf
 
C++ help finish my code Topics class definitions, arrays of objec.pdf
C++ help finish my code Topics class definitions, arrays of objec.pdfC++ help finish my code Topics class definitions, arrays of objec.pdf
C++ help finish my code Topics class definitions, arrays of objec.pdf
 
C++ help !!!!Sally wants to write a program to help with her kee.pdf
C++ help !!!!Sally wants to write a program to help with her kee.pdfC++ help !!!!Sally wants to write a program to help with her kee.pdf
C++ help !!!!Sally wants to write a program to help with her kee.pdf
 
C++ 10.14 LAB Book information (overriding member functions)Given.pdf
C++ 10.14 LAB Book information (overriding member functions)Given.pdfC++ 10.14 LAB Book information (overriding member functions)Given.pdf
C++ 10.14 LAB Book information (overriding member functions)Given.pdf
 
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdfC(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
C(x)=10x+3000 represents cost to produce x number of items. How many i.pdf
 
By answering the following question with references1. Which p.pdf
By answering the following question with references1. Which p.pdfBy answering the following question with references1. Which p.pdf
By answering the following question with references1. Which p.pdf
 
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdfBUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
BUSINESSTECHNOLOGYHEALTH SCIENCES COURSES HO.pdf
 
C programming languageHello i currently have this code and it is s.pdf
C programming languageHello i currently have this code and it is s.pdfC programming languageHello i currently have this code and it is s.pdf
C programming languageHello i currently have this code and it is s.pdf
 
C programming languageHello i am hoping to get some help understa.pdf
C programming languageHello i am hoping to get some help understa.pdfC programming languageHello i am hoping to get some help understa.pdf
C programming languageHello i am hoping to get some help understa.pdf
 

Recently uploaded

PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
Dr. Shivangi Singh Parihar
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
David Douglas School District
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
paigestewart1632
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
adhitya5119
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Excellence Foundation for South Sudan
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
Academy of Science of South Africa
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
TechSoup
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
adhitya5119
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Dr. Vinod Kumar Kanvaria
 
Community pharmacy- Social and preventive pharmacy UNIT 5
Community pharmacy- Social and preventive pharmacy UNIT 5Community pharmacy- Social and preventive pharmacy UNIT 5
Community pharmacy- Social and preventive pharmacy UNIT 5
sayalidalavi006
 
Smart-Money for SMC traders good time and ICT
Smart-Money for SMC traders good time and ICTSmart-Money for SMC traders good time and ICT
Smart-Money for SMC traders good time and ICT
simonomuemu
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
eBook.com.bd (প্রয়োজনীয় বাংলা বই)
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
RAHUL
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
chanes7
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Scholarhat
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
RitikBhardwaj56
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
heathfieldcps1
 

Recently uploaded (20)

PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
 
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
 
Community pharmacy- Social and preventive pharmacy UNIT 5
Community pharmacy- Social and preventive pharmacy UNIT 5Community pharmacy- Social and preventive pharmacy UNIT 5
Community pharmacy- Social and preventive pharmacy UNIT 5
 
Smart-Money for SMC traders good time and ICT
Smart-Money for SMC traders good time and ICTSmart-Money for SMC traders good time and ICT
Smart-Money for SMC traders good time and ICT
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
 
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments UnitDigital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
 

C Corporation net income this year is $800,000. The company generall.pdf

  • 1. C Corporation net income this year is $800,000. The company generally retains 25% of net income for reinvestment. The company's common stock currently has a book value of $4,000,000. They just paid a dividend of $2.17, and the required rate of return on this stock is 11%. Compute the value of this stock if dividends are expected to continue growing indefinitely at the company's sustainable growth rate.