Calculate the value of the stock with given required return

Assignment Help Finance Basics
Reference no: EM131974315

Question: Financial analysts forecast Google's growth for the future to be 5.45 percent. They just paid dividend at $1.20. What is the value of their stock when the required rate of return is 12.80 percent?

A firm is expected to pay a dividend of $5.00 next year and $5.28 the following year. Financial Analysts believe the stock will be at their target price of $102.00 in two years. Compute the value of this stock with a required return of 10 percent.

Reference no: EM131974315

Questions Cloud

What is the amount of tax : Financial calculator section The following questions may require the use of a financial calculator. A 15-year zero coupon bond has a yield to maturity.
What is the financial break-even level for the project : What is the accounting break-even level for the project? What is the financial break-even level for the project?
How can financial institutions change the size : How can financial institutions change the size and the direction of their repricing gap? Why is it useful to express the repricing gap in terms of a percentage.
What is the fair present value of limited brands stock : Financial analysts forecast Limited Brands (LTD) growth for the future to be 13 percent. LTD's most recent dividend was $2.00.
Calculate the value of the stock with given required return : A firm is expected to pay a dividend of $5.00 next year and $5.28 the following year. Financial Analysts believe the stock will be at their target price.
Dividends are portion : In the secondary market, stock prices are __________ . Dividends are a portion of __________ .
What is the amount of the last dividend the company paid : FGCU Inc. has a dividend growth rate of 6 percent, a market price of $16 a share, and a required return of 16 percent. What is the amount of the last dividend.
The NPV rule recommends rejecting the deal : The NPV rule recommends rejecting the deal while the IRR rule recommends accepting the deal, and according to the class notes the deal should be accepted.
What would be the crossover rate in the graph : If you plotted the NPV profiles, what would be the "crossover rate" in the graph?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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