About the invest in stock

Assignment Help Financial Management
Reference no: EM13878765

You want to invest in a stock that pays $5 annually dividend for the next four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is the price for this stock today?

Reference no: EM13878765

Questions Cloud

According to the capital asset pricing model : Security X has an expected rate of return of 17% and a beta of 1.65. The risk-free rate is 4% and the market expected rate of return is 13%. According to the capital asset pricing model, security X has an expected return of ______________%. It is fai..
How does the presence of cost of financial distress : How does the presence of cost of financial distress combined with the tax deductibility of interest (and the resulting interest tax savings) affect a firm's weighted average cost of capital as the firm increases its use of debt financing from no debt..
Organizations non operating and operating activities : If an organization's non operating and operating activities are profitable in a given year, which of the following statements is most correct?
Prepare flexible budgets for the final quarter at production : Prepare flexible budgets for the final quarter at production (and sales) levels of 18,000 and 24,000 units. Forecast the profit at these sales levels.
About the invest in stock : You want to invest in a stock that pays $5 annually dividend for the next four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is the price for this stock today?
Modern artifacts can produce keepsakes : Modern Artifacts can produce keepsakes that will be sold for $50 each.  Nondepreciation fixed costs are $2,900 per year, and variable costs are $30 per unit.  The initial investment of $3,000 will be depreciated straight-line over its useful life of ..
About short-term debt : Which of the following statements about short-term debt is(are) most correct?
The sole owner of duarte spring company : 1. You're the sole owner of Duarte Spring Company; you paid $200K for the business when you acquired the firm five years ago. Duarte is a manufacturer of high-end springs used by major aerospace and aircraft manufacturing companies. Six months ago, y..
Describe a job or careers in marketing that interest you : Describe a job or careers in marketing that interest you. (Market Research). Describe two jobs in your field that interest you. Describe how in that role you may also act as a part-time marketer. (Research Analyst, Statistician)

Reviews

Write a Review

Financial Management Questions & Answers

  Present value for various compounding periods

Find the present value of $600 due in the future under each of the following conditions. Round your answers to the nearest cent. 8% nominal rate, semi annual compounding, discounted back 5 years

  Properly constructed cross hedge is established

MacDonald's Hamburger Company wants to hedge its anticipated purchase of 1,600,000 pounds of hamburger with the live cattle futures contract (40,000 lb. of live cattle per futures contract). The estimated relationship between the price that MacDonald..

  Question 1a- wildcat company stock is trading for 80 per

question 1a- wildcat company stock is trading for 80 per share. the stock is expected to have a year end dividend of 4

  What is the relationship between diversification and firm

1 how does corporate strategy differ from business strategy?2 how has the practice of corporate strategy evolved over

  In terms of her equity and debt

Brandy and Ken have been colleagues for many years. Brandy invested $10,000 in their joint business, and Ken invested $15,000. Their firm, BK, develops software. If BK were now to go bankrupt, what would happen to Brandy (in terms of her equity and d..

  Expects output levels to remain steady in the future

A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant manager believes that it would be cheaper to make the..

  Using the indirect method in operating activities section

Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section. Prepare another statement of cash flows for 2014 using the indirect method in the Operating Activities section.

  Explain what is the expected return of stock g

What are the expected returns of each of the four individual assets using CAPM if the line equations is plotted with an intercept of 3.0% (risk-free rate) and a market premium of 10.5% (slope of the line)? What is the expected return of stock G, H,..

  Equilibrium effects of expansionary monetary policy

What are the short run equilibrium effects of expansionary monetary policy in the DD-AA model? Make sure to analyze both temporary and permanent changes in monetary policy. What is the difference between these two scenarios with respect to equilibriu..

  Compute the after-tax cost of each component of capital

The Killington Corporation has planned capital expenditures of $40 million for the upcoming fiscal year. Killington's stock is currently selling at $22 per share. Flotation costs are 10%. The earnings growth rate has been steady and is expected to co..

  Semi-annual compounding-what is yield to call for bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $421 per bond. These are callable in 7 years at a call price of $640. Using semi-annual compounding, what is the yield to call for these bonds? (Do not round intermediate calcula..

  What is kinstons pre-tax cost of debt and preferred stock

What is kinston's pre-tax cost of debt? What is kinston's cost of preferred stock? What is kinston's cost of equity. What is kinston's capital structure weight of the preferred stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd