Calculate the price of the stock

Assignment Help Financial Accounting
Reference no: EM133005080

Question - a. RAK Ceramic is currently paying dividend Tk. 4.40 per share, which is expected to grow at a constant rate per year. Investors required rate of return is 17 percent. Calculate the price of the stock based on average growth of the stock, and justify your findings to take stock investment decisions. (CMP=77.50 Tk.)

Year Dividend per share Growth rate

2014 3.25 Tk.

2015 3.65 Tk.

2016 3.95 Tk.

2017 4.25 Tk.

2018 5.30 Tk.

2019 4.40 Tk.

b. Explain different types of common stocks with basic features in light of BD stock market and major challenges of DSE to build up investors' confidence.

c. Briefly explain the steps in capital budgeting decision making process with constraints of implementation stage.

Reference no: EM133005080

Questions Cloud

Determine the Crane Corporation price-earnings ratio : Crane Corporation's common stock is selling for $36 per share on the NASDAQ. Determine the Crane Corporation's price-earnings ratio
What is the nominal annual rate of interest : Question - What is the nominal annual rate of interest compounded bi-monthly at which $8000 will accumulate to $12000 in 5 years
What is the price of the bill today : The face value of the bill is $100,000. If the current market yield on this bill is 3% per annum, what is the price of the bill today
Find out total value of sales : Cost of material RM600,000; direct wages RM500,000; factory overheads RM300,000; administration overheads RM336,000; Find out total value of sales
Calculate the price of the stock : Calculate the price of the stock based on average growth of the stock, and justify your findings to take stock investment decisions. (CMP=77.50 Tk.)
Calculate the Current ratio financial ratios for XYZ Ltd : During 2020, credit sales and cost of goods sold were $450,000 and $250,000, respectively. Calculate the Current ratio financial ratios for XYZ Ltd
What is the current share price : Electronicca is an electric start up and growing rapidly. The company has paid a dividend of $2 per share. What is the current share price
What will be the value of equity : The cost of equity is 12.5%. The current value of the firm is 500,000. What will be the value of equity if HP electronic borrows $300,000
Explain how Amy and Mike could derive their cash flow : They jointly own their home worth $820,000 and have no debt. Explain how Amy and Mike could derive their cash flow for retirement

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine total amount that each officer will to shoulder

Determine the total amount that each officer will have to shoulder and The amount each officer has to pay the financing company per month.

  Draw up a petty cash book with analysis columns

Draw up a Petty Cash Book with analysis columns. Postage Mar 1 Received from chief cashier RM 50 to start a petty cash float Mar 1 Paid for mineral

  Determine the npv of purchasing the can machine

Assume the discount rate is 10% and the corporate tax rate is 21%. Determine the NPV of purchasing the can machine. Should you accept or reject the project?

  Find what is the market value of the bond

A $1,000 par value 15-year bond pays 9%, If similar bonds are currently yielding 10% annually, what is the market value of the bond?

  Find the probability that noneconomic factors will be cause

WQood products industry officials now claim that major mill closures over noneconomic issues occur at a rate of one every six months. Assume that this rate is accurate.  find the probability that no major mill closures will occur during a given year ..

  Compute the amount of goodwill acquired by winans

On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont’s balance sheet showed assets of $620,000, liabilities of $200,000, and owners’ equity of $420,000. The fair value of..

  Prevent future arsenic seepage into the water system

Topic for Discussion: Joey Hernandez was reprimanded by the home office for recommending a pollution abatement project because the project did not meet the standard financial criterion of an 8 percent rate of return. What might be the ultimate conseq..

  What ethical and confidentiality issues

What specifically list which ACt or regulation has been broken like in scenario A the Privacy Act has been breached, but also which part of the ACt?

  Find earnings per share and price or earnings ratio

Find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found

  Calculate the cost of goods sold and the interest expense

Other operating expenses = $2,500,000. Calculate the cost of goods sold and the interest expense for Moore's HoneyBee Corp

  What is the net working capital for abc corporation

What is the net working capital in 2015 for ABC Corporation? What are the total current assets in 2015 for ABC Corporation?

  Prepare cook company journal entries related to the lease

On January 1, 2016, Cook Textiles leased a building with two acres of land from Peck Development. The lease is for 10 years at which time Cook has an option to purchase the property for $130,000. The building has an estimated life of 20 years with a ..

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!

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