Calculate the stock price for company

Assignment Help Finance Basics
Reference no: EM132764405

Calculate the stock price for each company. Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return fo each company's stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company?

Dividend next year $2.65

Dividend growth rate 5%

Red required return 8%

Yellow required return 11%

Blue required return 14%

Complete the following analysis. Do not hard core values in the calculation.

Reference no: EM132764405

Questions Cloud

Find what most suitable rate of roi for division a for year : This equipment was paid for by the Head Office Finance Unit of Coleus, The most suitable rate of ROI for Division A for the year is ?
Calculate the deferred income tax balances : Total accumulated depreciation for accounting purposes, $170,000, Calculate the deferred income tax balances for the fixed asset and the warranty
Legal standard for introduction of scientific evidence : Discuss the current legal standard for introduction of scientific evidence. Compare and analyze the Daubert standard, the Frye standard,
Local police and private security personnel : What do you think is the difference between local police and private security personnel?
Calculate the stock price for company : Calculate the stock price for each company. Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year.
What will be preference for taking on proposed new product : Daffodil Corporation, requires a minimum return on investment of 8%, what will be the preference for taking on the proposed new product?
How much is the unadjusted cash balance per book : The cash in bank account of S-mart, Inc. for April 2010 showed an ending balance of P129,298. How much is the unadjusted cash balance per book
Find what is book value of the equipment after upgrade : What is the book value of the equipment after the upgrade? The company paid $5,000 to employ a technician to upgrade the equipment and paid $1,000 interest.
Calculate the stock price for company : Red Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.65 next year. The growth rate in dividends for all three

Reviews

Write a Review

Finance Basics Questions & Answers

  What is firm b wacc under its current leverage ratio

What is Firm B's WACC under its current leverage ratio (D/(D+E)) of 40%? Show your calculations.

  Company produce the new detergent

The company's tax rate is 40 percent. Should this company produce the new detergent? (Show detailed cash flows and NPV calculations)

  Transactions analysis and trail balance make t-accounts for

transactions analysis and trail balance make t-accounts for the following accounts that appear in the general ledger of

  You decide to show alice cartwright how beta affects the

you decide to show alice cartwright how beta affects the volatility of stocks. you need to go out and find 5 stocks in

  What was the percentage change in the real exchange rate

What was the percentage change in the real exchange rate during the year? What was the percentage change in the relative purchasing power of the franc? What was the percentage change in the relative purchasing power of the yen?

  What is an application service provider (asp)

What are reasons for using external and internal sources of hardware?

  As reported by the bureau of labor statistics the cpi for

as reported by the bureau of labor statistics the cpi for 2004 was 189.7 using a base year of 1983 100. the cpi for

  Compute the cost depletion

On March 25, 2016, Parscale Company purchases the rights to a mineral interest for $9,795,000. At that time, the remaining recoverable units in the mineral.

  Characterized by a learning curve

you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $6. The first unit costs you $64 to produce.

  Using the ratios provided within the scenario submit a debt

impact of debt financing on accounting risk and returnnbsp please respond to the followingusing the ratios provided

  Determine factors that will drive financial planning process

Determine the key factors that will drive the financial planning process for most organizations in the post-merger phase, and examine the related impact to the organization process. Provide support for your rationale.

  Show the impact on the market for u.s. treasury bonds

Use one graph to show the impact of this change in tax rates on the market for municipal bonds and another graph to show the impact on the market for U.S. Treasury bonds.

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