According to the constant growth dividend model

Assignment Help Financial Management

Reference no: EM131599720

The Black Forest Cake Company just paid an annual dividend of $5.55. If you expect a constant growth rate of 5.24 percent, and have a required rate of return of 12.76 percent, what is the current stock price according to the constant growth dividend model? Round the answer to two decimal places.

Reference no: EM131599720

Questions Cloud

What is amount of net working capital : Total assets are $2000, fixed assets are $600, long-term debt is $500, and short-term debt is $500. What is the amount of net working capital?

Find the convexity of portfolio consisting of instruments : Find the convexity of a portfolio consisting of the following instruments, assuming the effective rate of interest is 8%:

Rate of return does investor expect to receive on stock : Which rate of return does the investor expect to receive on this stock if it is purchased today?

Determine if there is arbitrage opportunity based on prices : Determine if there is an arbitrage opportunity based on the prices given, and if there is one, find amount of profit that can be realized by taking advantage

According to the constant growth dividend model : what is the current stock price according to the constant growth dividend model?

What would the annual interest rate : what would the ANNUAL interest rate need to be (assume semi-annual payments)?

What is gold company stock worth to you : If the company is growing at a rate of 2.65 percent per year, and your required rate of return is 13.43 percent, what is Gold's company stock worth to you?

Calculate the benefit-cost ration of this project : Local department of public works just evaluated a project of a new hydro power plant. Calculate the benefit-cost ration of this project.

Stock price according to the constant growth dividend model : What is the stock price according to the constant growth dividend model?

User Account

All Pages