Beaksley, inc. is a very cyclical type of business

Reference no: EM13705309

Beaksley, Inc. is a very cyclical type of business which is reflected in their dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all of the outstanding
shares at a price of $50 a share. At an 8 percent rate of return, what is this stock worth today?

Reference no: EM13705309

Questions Cloud

The theory of purchasing power parity states : The theory of purchasing power parity states that, between two nations, the : interest rates are higher for stronger currencies currency of country with higher inflation would appreciate relative to currency of country with lower inflation

The european inflation rate is expected to be 4 percent : The U.S. inflation rate is expected to be 3 percent over the next three years, while the European inflation rate is expected to be 4 percent over the same period. The current spot rate of the euro is $1.03. Using purchasing power parity, the ex..

What external sources of information may be useful : What external sources of information may be useful to someone doing financial planning?

What is your estimate of the stock price : 1. Deming Tiles (DT) is being considered for acquisition by Jenks Hardware (JH). The stock price of DT is currently at $35 per share; current EPS is $2.75. The average P/E ratio in DT's industry is 25 while that of JH is 15. Using the P/E multi..

Beaksley, inc. is a very cyclical type of business : Beaksley, Inc. is a very cyclical type of business which is reflected in their dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now, the company is repurchasing all o..

Evaluation of corporate performance : Evaluation of corporate performance1. Introduction2. Financial Statement Review3. Pro Forma Financial Statements

Examine the impact of two different scenarios : Your boss would like you to examine the impact of two different scenarios, adding a modest level of debt and adding a higher level of debt. In particular, your boss would like to consider issuing $1 billion in new debt or $5 billion in new..

What is the standard deviation of these returns : A stock has yielded returns of 6 percent, 10 percent, 10 percent, and -4 percent over the past four years, respectively. What is the standard deviation of these returns?

Behavior within firms in relation to financial management : From the e-Activity, examine ethical behavior within firms in relation to financial management. Give two (2) examples of companies that have been guilty of ethics-based malfeasance related to financial management, and determine whether or not t..

User Account

All Pages