Calculate the value of the shares of bryce printing

Assignment Help Finance Basics

Reference no: EM13304762

Bryce printing has a dividend of $0.64 in the year 1998 and this dividend has grown to $1.55 in year 2006. It is estimated that this company cannot continue at this high growth and has reached the normal growth stage where the normal growth rate will be 60% of the historical growth rate. The risk free rate is 3.64% and the market risk premium is 4.52%. the beta of the stock during the normal growth is estimated as 1.05. Calculate the value of the shares of Bryce printing.

Reference no: EM13304762

Questions Cloud

What does the market believe that 2-year treasuries : If the interest rate on a 3-year Treasury Note is 3.00%, and 5-year Notes are yielding 3.75%, then based on the expectations theory, what does the market believe that 2-year Treasuries will be yielding 3 years from now?

What is the bond nominal yield to call : The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond's nominal yield to call?

What is the difference between these two levels : The decay of a fictitious nucleus is accompanied by the emission of a gamma ray with wavelength 2.48*10-2 nm. What is the difference between these two levels

What is the velocity of the water in the hose : A long horizontal hose of diameter 3.2 cm is connected to a faucet. At the other end, there is a nozzle of diameter 1 cm. What is the velocity of the water in the hose

Calculate the value of the shares of bryce printing : The risk free rate is 3.64% and the market risk premium is 4.52%. the beta of the stock during the normal growth is estimated as 1.05. Calculate the value of the shares of Bryce printing.

Calculate temperature of the air at the exit of the nozzle : Assuming that the nozzle is well insulated and operating at steady state and that the air behaves as an ideal gas, calculate (a) the mass flow rate of air in kg/s, (b) the exit area of the nozzle in m^2,

Determine the interest rate : Determine the interest rate that would require a monthly total payment that is less than your current total payment. Also, refinancing costs you $2000 up-front in closing costs.

How wide will that diffraction maximum be : A two-slit apparatus is covered with a red (643 nm) filter. When white light is shone on the filter, on the screen beyond the two-slit apparatus, how wide will that diffraction maximum be

What is the maximum sales growth rate the company : Last year Montero Corporation had $850 million of sales, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets?

User Account

All Pages