According to the constant growth dividend model

Assignment Help Financial Management
Reference no: EM131588412

The last dividend of Delta, Inc. was $7.91, the growth rate of dividends is expected to be 3.65 percent, and the required rate of return on this stick is 10.86 percent. What is the stock price according to the constant growth dividend model?

Reference no: EM131588412

Questions Cloud

Take a few minutes to think about the material : Have you discovered any habits or tips that help you to complete your course work more effectively or efficiently?
What frequency difference will the unit detect from a car : What frequency difference will the unit detect from a car receding at a speed of 64.5 m/s from a stationary patrol car?
Discuss circular resistor-capacitor network of given figure : Show that the solutions of the circular resistor-capacitor network of Figure may be explicitly found. Comment on the use of this network as an analogue device.
Prepare the adjusting entry on december : StorageTek Corporation gathered the following information from its accounting records for the year ended December, Prepare the adjusting entry on December 31
According to the constant growth dividend model : What is the stock price according to the constant growth dividend model?
Research and then describe under armour inc : Research and then describe "Under Armour Inc." primary business activities. Include: A brief historical summary
Describe three perimeter intrusion detection systems : Describe three perimeter intrusion detection systems and give an example of one that you have seen deployed either at work or another location.
Return does the investor expect to receive on this stick : Which rate of return does the investor expect to receive on this stick if the stock is purchased today?
Find the location and the magnification of the coins : Find the location and the magnification of the coins final image - A coin is placed 12.0 cm to the left of the converging lens.

Reviews

Write a Review

Financial Management Questions & Answers

  What is its sustainable growth rate

Rocky Sales, Inc., has current sales of $1,268,864 and net income of $203,018. It also has a debt ratio of 47 percent and a dividend payout ratio of 69 percent. The company’s total assets are $587,439. What is its sustainable growth rate? (Round answ..

  Calculate the present value of the cash flow stream

Calculate the future value of $100,000 ten years from now based on the following annual interest rates: Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows: Calculate the present value ..

  Directly produce any sales but will reduce operating costs

Superior Manufacturers is considering a 3-year project with an initial cost of $846,000. The project will not directly produce any sales but will reduce operating costs by $295,000 a year. The equipment is depreciated straight-line to a zero book val..

  Stores issuing and accounting for equipment

Amongst other things, the management has asked him to work in the stores issuing and accounting for equipment issued to Aggressive's employees. Alan feels that he has not been trained to do this and has given in his notice.

  Use this sales figure to compute the profit level

Surmec, Inc. has sales of $2.1 million last year. The company’s primary business line is manufacturing of nuts and bolts. Since this is a mature industry, the analysts are certain that the sales will grow at a steady rate of 7 percent a year for as f..

  Repaid in equal annual instalments

Big brothers inc borrows $165315 from the bank at 6.52 percent per year compounded annually to purchase new machines. This loan is to be repaid in equal annual instalments at the end of each year over the next 3 years. How much will each annual payme..

  How much will he have at retirement

Barry's employer will match this amount. If Barry can earn an 8% return on his investment, how much will he have at retirement?

  What is the effective rate on a mortgage loan

What is the effective rate on a credit card that has a nominal interest rate of 17.99% compounded DAILY (365 days per year)? What is the effective rate on a mortgage loan assuming the following: The nominal rate is 4.75% -The loan is paid monthly.

  Purchased the stock without margin

You purchase 950 shares of 2nd Chance Co. stock on margin at a price of $29. Your broker requires you to deposit $18,500. 1. Suppose you sell the stock at a price of $37. What is your return? What would your return have been had you purchased the sto..

  Union has constant growth rate

Union Pacific Railroad reported net income of $770 million in 1993, after interest expenses of $320 million. (The corporate tax rate was 36%.) It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. Estimate the ..

  Same exercise price and expiration date as call option

The current price of a stock is $33 and the annual risk-free rate is 6%. A call option with a strike price of $32 and with one year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same ex..

  Assume that an individual makes a down payment

The price of a new car is $20,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 6%/year compounded monthly. What will the interest charges be if she elects t..

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