Calculate current stock price

Reference no: EM1361204

Sarah wants to buy XYZ stock today. She estimates that it will be worth $490/share in exactly two-years from now, and she has a minimum return requirement of 15%. XYZ is not currently paying a dividend nor is it expected to pay one in the near future. What is the price Sarah should pay today for one share?

a. $371
b. $426
c. $490
d. $564

Reference no: EM1361204

Questions Cloud

Eliminating vitamin a deficiencies : Propose a program to help eliminate vitamin A deficiencies in two places: one is a tiny rual town in Oklahoma, and the other is a small village in Tibet where all the residents are vegetarian. you may not include supplements in your plan.

Citizen involvement : Citizen Involvement - what are methods you aware of that local governments use to help ensure that all citizens feel like they are a part of the process?

Explain decrease in memory cost and push to keep data : Explain the apparent contradiction between the decrease in memory cost and the push to keep a single copy of Explain decrease in memory cost and the push via the paradigm of deduplication.

How to movitate a team : Charles Lacy advocates compensating the team for their performance which is good if you have team members who all participate and are productive.

Calculate current stock price : Sarah wishes to buy XYZ stock today. She estimates that it will be worth $490 per share in exactly 2-years from now, and she has a minimum return requirement of 15 percent.

What is the decibel level of the street : How far from the center of the earth must a person be to experience acceleration as the reason of gravity that is one half the acceleration at the surface.

Eating disorders-lead to health problems : This posting offers help explaining the following: some of the health problems assoiciated with anorexia nervosa, bulimia nervosa, and bing-eating disorder? from a pysiological standpoint, how eating disorders may lead to health problems.

What is grid computing : Help in describing three different grid computing projects not of the same grid that are helping solve a world or social problem. What is grid computing?

Managing operations vs service organizations : Analyze the four costs associated with maintaining an inventory to determine which appears to be most controllable by any organization. Explain your rationale.

User Account

All Pages