Calculate the estimate of the stocks price today

Assignment Help Financial Management

Reference no: EM131962973

John is looking to value a particular stock that is expected to pay the dividend of $1.80 at the end of each year for at least the next few years.

John expects to to be able to sell the stock at the end of year two, just after he receives the dividend in that year, for $75 per share.

Given this information, what is the estimate of the stock's price today if the required rate of return is 11.00%.

Place your answer in dollars and cents without the dollar sign.

Reference no: EM131962973

Questions Cloud

What is the npv for the proposed acquisition : The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm.

What will johnsons incremental return on new average : What will Johnson's incremental return on new average investment be? (Do not round intermediate calculations.

Calculate the expected outcome in 1 year assuming stock : Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target. Use 100 contracts for your option quantities.

Find the project approximate internal rate of return : Determine the project's approximate internal rate of return. Determine the project's payback period. (Round answer to two decimal places.)

Calculate the estimate of the stocks price today : John is looking to value a particular stock that is expected to pay the dividend of $1.80 at the end of each year for at least the next few years.

Emphasize internal theft prevention : Is one approach better than the other? How should protection resources be allocated in any organization?

Individual rights and civil liberties : What impact might centralization of the U.S. intelligence functions have on individual rights and civil liberties?

Find the interest in the 19th payment : John repays a loan by making 20 annual payments. The first Payment is 2 and each subsequent Payment 2 more Than The previous payment.

How many sales would a salaried rep need to make : How many sales would a salaried rep need to make in order to cover his/her salary? (see the excerpt from the case below) In both types, of sales calls.

User Account

All Pages