Register
Question 9 TEME is a manufacturer of toy construction equipment. If it pays out all of its earnings as dividends, it will have earnings of 0.3 million per quarter in perpetuity. Suppose that the discount
25.5k views
2 votes
Question 9 TEME is a manufacturer of toy construction equipment. If it pays out all of its earnings as dividends, it will have earnings of 0.3 million per quarter in perpetuity. Suppose that the discount rate, expressed as an effective annual rate (EAR), is 16%. TEME pays dividends quarterly. What is the value of TEME if it continues to pay out all of its earnings as dividends

User Badcompany
by
8.1k points

1 Answer

3 votes

Answer:

8 million

Step-by-step explanation:

I solved the question a short while ago

Module 4

Fundamentals of Finance

User Tiesselune
by
7.6k points
← Prev Question Next Question →

Related questions

User Blacksun
asked Sep 24, 2024 64.5k views
Q₁. State whether teme or false. If false, correct the statement globe cannot show details of landforms. A
Blacksun asked Sep 24, 2024
by Blacksun
8.0k points
1 answer
0 votes
64.5k views
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers

Other Questions

What can turn igneous rock into sediment?
In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
What is meant by data mining ?
You sell popcorn during your schools football games. Knowing that the people usually buy more when the price is lower, how would you price your popcorn after halftime?
Identify the advantages and disadvantages of a command economy.
Link Copied!