Calculate the price per share-darden inc

Assignment Help Finance Basics
Reference no: EM132643776

1. Rudy-G Co. will pay a dividend of $1.88 per share next year. The dividends are expected to grow at 1% per year, forever. Calculate the price of the stock assuming investors require a 7% rate of return on their investment. (Round to 2 decimals)

2. Disney just paid a dividend of $1.96 per share. The price of the stock is $60.15. Dividends are expected to grow at 1%, forever. Calculate the implied rate of return on this investment. (Enter percentages as decimals and round to 4 decimals)

3. Darden Inc. will pay a dividend of $4.55 next year. The dividends are expected to grow at 2% forever, and investors require an 8% rate of return on their investment. Calculate the price per share. (Round to 2 decimals)

Reference no: EM132643776

Questions Cloud

Calculate the comparable valuation price for general mills : Given the provided information calculate the comparable valuation price for General Mills based on Price / FCF. (Round to 3 decimals)
Calculate Z for Cheryl : Calculate Z for Cheryl. At time 0, Cheryl deposits X into a bank account that credits interest at an annual effective rate of 4.1%.
Prepare a cash budget for xyz pty ltd : Prepare a cash budget for XYZ Pty Ltd and provide associated advice on required financing and Prepare and interpret a variance analysis for ABC Pty Ltd
Explaining applicable legal principles : Explaining applicable legal principles and citing relevant authorities on: (1) Whether the company is liable to pay Gorka the $75,000 prize
Calculate the price per share-darden inc : Darden Inc. will pay a dividend of $4.55 next year. The dividends are expected to grow at 2% forever, and investors require an 8% rate of return on their inves
What was the initial value of the deposit : Jorge made a deposit in Bank A for the first 95, If at the end of the three tranches the final capital was $ 400,000, what was the initial value of the deposit?
What is the direct quote for the krona in paris : Suppose it is 1990 and the spot quotes for the swedish krona and French Franc are $.1395-99 and $.1130-33, respectively, What is the direct quote for the Krona
Calculate the current price per share : If investors require a 9% rate of return on their investment, calculate the current price per share? (Round to 2 decimals)
What are the major sources of cash for each firm : What are the major sources of cash for each firm? What are the major uses of cash for each firm? What was the trend in cash flow

Reviews

Write a Review

Finance Basics Questions & Answers

  Use the financial statements effects template to show effect

Compute the December 31, 2010 PBO and FMV of pension assets. Compute 2010 pension expense. Use the financial statements effects template to show the effects on the 2010 financial statements.

  Tax contingency for unrecognized tax benefits

Based on these facts, provide the journal entry that Phillips would make in Year 1 to record tax expense, taxes payable.

  Calculate the portion of the monthly payment

(Solving for n with nonannual periods) About how many years would it take for your investment to grow fourfold if it were invested at an APR of 16 percent.

  Is there is a gain or loss on the futures contract

On July 31, does the firm buy or sell the futures contracts? How much is one futures contract worth?

  Analyze which would make more financial sense

Which would make more financial sense? Buying or leasing the home? Explain your rationale. Given the facts above, should you lease the house or sell it?

  General capital budgeting rule for selecting optimal

State a general capital budgeting rule for selecting the optimal strategy in this and similar problems.

  Cutting their tuition in order to stimulate enrollment

The October 10, 2013 issue of the Wall Street Journal contained an article entitled, “Colleges Try Cutting Tuition—and Aid Packages,” by Melissa Corn.  The article asserts that: (A)   A dozen or so colleges actually are cutting their tuition in order..

  What is the net asset value per share

The fund also has liabilities that total $40 million. If this mutual fund has 25 million shares, what is the net asset value per share?

  Compound interest per quarter

Which would you prefer to earn, 6% compound interest per year or 1.5% compound interest per quarter?

  Calculate the net daily advantage of the system

If the lock box makes the cash available 2 days earlier, calculate the net daily advantage of the system. (Do not round intermediate calculations).

  Estimate the dollar cash flows received as a result

Estimate the dollar cash flows received as a result of using the options market hedging strategy.

  What might cause the gradual decrease in operating leverage

What might cause the gradual decrease in operating leverage for Adobe? Website designers favor its Photoshop and Illustrator software applications, and Adobe’s Acrobat software has become a standard for sharing documents online.

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