Calculating the stock expected price

Assignment Help Finance Basics
Reference no: EM131938478

Problem: Black Inc's stock currently sells for $26,000 per share. The dividend is projected to increase at a constant rate of 3.5% per year. The required rate of return on the stocks, rs is 11.50%. What is the stock's expected price 5 years from now? Please provide authentic solution.

Reference no: EM131938478

Questions Cloud

How should the company ship the cars in order to minimize : A Business Application: Minimum Shipment Cost An automobile company has two factories.
What was the book value of the property : Calculate and record the depletion expense for 2012 and 2013. What was the book value of the property at the end of 2013
What is the required rate of return on the investor : What is the required rate of return on the investor's portfolio? Please show the complete explanation.
What total amount reported on consolidated income statement : For the year, Senior reported cost of goods sold of $600,000, What is the total amount reported on the consolidated income statement for cost of goods sold
Calculating the stock expected price : The required rate of return on the stocks, rs is 11.50%. What is the stock's expected price 5 years from now? Please provide authentic solution.
Write a program that simulates a very simple hr application : Write a program that simulates a very simple HR application for a company. You will need to create a class to instantiate a Person object (or Employee object).
What total amount reported on consolidated balance sheet : Assume that there were no allocations established at the date of acquisition. What is the total amount reported on the consolidated balance sheet
Computing the price of company stock : Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)?
Compute the cost of debt-cost of equity and the wacc : Compute the Cost of Debt, Cost of Equity and the WACC. Please provide the authentic solution of this problem.

Reviews

Write a Review

Finance Basics Questions & Answers

  Workloads in a child care facility should be

1. Which of your responsibilities as a caregiver depends largely on where you live? 2. Workloads in a child care facility should be

  Journalize for frenchroast the entry paying cash dividends

Accounting for cash dividends Frenchroast Company earned net income of $95,000 during the year ended December 31, 2016.

  Prepare the journal entries to record the sales

Prepare the journal entries to record the sales, cash collections and recognition of gross profit only if appropritate in the years 2010, and 2011.

  Principal of financial market

Principal of financial market

  Cost of preferred stock capital

If Ink were to sell new preferred stock, it would pay $4 per share as flotation cost. Ink’s tax rate is 40%. What is Ink’s? 1. After tax cost of debt capital? 2. Cost of preferred stock capital? 3. Cost common stock? 4. Cost of capital?

  Analyze the approaches to capital structure decisions and

analyze the various ways to determine the cost of capital and determine which is the most difficult to get right.

  Calculate the free cash flow for each of the next three year

Without the new products, free cash flow in 2012 would be $55,000 and it would grow at 8% per year forever. What is the value of the stock if the new products aren't introduced?

  Evaluate impact of global financial markets on us market

Evaluate the impact of global financial markets on U.S. financial market performance over the past three years and suggest which foreign market has had the most significant impact. Provide support for your conclusion.

  Transactions affect dynamic mattress

How would each of the following six different transactions affect Dynamic Mattress (cash) and net working capital?

  Equal payments will be made over a 3 year period the first

you have borrowed 25000.00 at an interest rate of 16. equal payments will be made over a 3 year period. the first

  Type of business

In today's business environment, which type of business do you think will survive? Why?

  What specific factors determine interest rates how does

1what specific factors determine interest rates? how does inflation affect interest rates? how can interest rates

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