Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Principles of Finance sample question from TESC - which formula to use?
#1
Trying to get started studying for the DSST for Principles of Finance. Came across this, and could not figure out what the answer was, or for that matter, what formula I would use here (tried the Gordon Growth Model and promptly got lost:

"A firm has common stock outstanding that paid a $2 dividend last year. This stock has a 6% expected growth rate. If you have a 10% required rate of return, what is the most you should pay for this stock?"

Thanks.
Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  Question of college algebra inertia2018 3 440 05-02-2019, 07:30 PM
Last Post: dfrecore
  SL Accounting Question Mab81 3 537 07-06-2018, 08:10 PM
Last Post: Mab81
  Time and Distance question CLEP101 5 997 03-22-2018, 12:37 PM
Last Post: bluebooger
  IC Flashcard Question gnat1001 2 933 05-03-2017, 05:08 PM
Last Post: sanantone
  Corporate Finance - Calculating Loan Payment AngelaP 0 626 11-05-2015, 03:16 PM
Last Post: AngelaP
  Statistics Question re: Mean soliloquy 6 1,154 08-04-2014, 01:31 PM
Last Post: Jonathan Whatley
  Probability Formula Question soliloquy 4 837 07-30-2014, 07:50 PM
Last Post: jdsdog10
  APA Citation question JanusthePhoenix 5 1,786 12-03-2009, 03:04 AM
Last Post: JanusthePhoenix
  Microeconomics CLEP question? MCunningham 0 1,320 06-30-2009, 11:00 PM
Last Post: MCunningham
  Principles of Statistics '08 Written dmman 0 1,343 08-26-2008, 04:26 AM
Last Post: dmman

Forum Jump:


Users browsing this thread: 1 Guest(s)