User Account

All Pages

Calculate the intrinsic value of maxine corp

Assignment Help Finance Basics
Reference no: EM132816397

Maxine Corp. is enjoying a surge of business prosperity in the recent few years. It just paid common dividends at $0.02 per share to its shareholders last year (D0=$0.02). It is expected that the dividends will grow at 70% per year for the next 4 years, at 30% for the following 2 years, and at a constant rate of 7% per year thereafter. Beta for Maxine Corp. common stock is estimated to be around 1.2; risk-free interest rate is approximately 5%; the market risk premium is around 10%. Calculate the intrinsic value of Maxine Corp. common stock today (i.e. at time 0).

Reference no: EM132816397

Questions Cloud

Identify a process within your organization : Identify a process within your organization that requires improvement. Explain how using the DMAIC method differs from how improvements are currently made
What is the risk free rate : 2. What is the risk free rate that should be included in the MRP? There are lots of options, explain your selection.
Compute the equivalent full units of production : At March 31, there were 25,000 units in process that were 75% completed. Compute the equivalent full units of production for the Finishing Department
What are some of the formal qualities in your chosen song : What are some of the formal qualities in your chosen song or dance performance? What are the expressionist qualities in your chosen song or dance performance?
Calculate the intrinsic value of maxine corp : Calculate the intrinsic value of Maxine Corp. common stock today (i.e. at time 0).
Does google incentive policy contradict the notion : Does Google's incentive policy contradict the notion that individual learning is necessary but not sufficient for organisational learning to occur
What maximum amount could marie withdraw each month : What maximum amount could Marie withdraw each month so that her balance never decreases (nearest dollar)?
What amount should be reported as deferred tax expense : What amount should be reported as deferred tax expense for the current year? Aries Company reported a deferred tax asset of P90,000 on January 1, 2020.
Differences between debt financing and equity financing : What are the differences between debt financing and equity financing?

Reviews

Write a Review

Finance Basics Questions & Answers

  Working on a research project

His first step was determining that the question would be: 'how do sleep deprived teenagers function in school?' Evaluate which of the following should

  Explain four differences between rrsp accounts and tfsas

Explain four differences between RRSP accounts and TFSAs. What advice would give these clients about their RRSP/TFSA?

  Tax rate and the assessment practices of ms

Using the tax rate and the assessment practices of Ms. Brown's district, how much tax would Mr. Barnes pay?

  Find the payback period on the investment

Payback: Northern Specialties just purchased inventory-management computer software at a cost of $1,645,276. Cost savings from the investment over the next six.

  How can the forecasts be improved

Collect a reasonably long set of data, and see how well standard forecasting methods work. How can the forecasts be improved?

  Turner agrees to finance the balance of 20000nbsp for 4

you agree to purchase a boat from turnerrsquos boat dealership for 30000.you agree to pay 10000. in cash and turner

  Calculate the financial ratios

Calculate the financial ratios

  Is the coase theorem applicable

A farmer who grows organic corn is at risk of having his crop contaminated by genetically modified corn grown by his neighbors.

  What is an expense in healthcare organization

What is an expense in healthcare organization? On which financial statements are expenses recorded? What is one of the largest expenses in a healthcare organization? Please cite your references

  Calculate discounted payback using cashflows

Calculating discounted payback. An investment project has annual cash inflows of $6,500, $7,000, $7,500, and $8,000, and a discount rate of 14%.

  Average worker in organization

Are U.S. Executives paid too much particularly compared to the average worker in their organization?

  Processes the check in the normal manner

Ocean Research of San Diego, California, just received a check in the amount of $800,000 from a customer in Bangor, Maine.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd