Capital asset pricing model with verizon beta coefficient

Assignment Help Financial Management
Reference no: EM131991214

Verizon company stock has earnings most recently of $3.20 per share of common stock. The company forecasts the earnings to grow at a 3.75% growth rate in the future. Using a capital asset pricing model (CAPM) with the Verizon Beta coefficient, the required rate of return for Verizon is 8.206%. What is the price per share that an investor should pay for Verizon stock?

Reference no: EM131991214

Questions Cloud

How much would be in your savings account in six years : How much would be in your savings account in 6 years after depositing $140 today if the bank pays 8 percent per year?
What would be the third year future value of the deposit : What would be the third year future value of the deposit?
Compute the present value and future value : What is the future value of $800 deposited for one year earning a 6% interest rate annually? Compute the present value of a $1200 payment made in 10 years.
They might be able to monitor or control for agency conflict : Discuss why you believe they are agency conflicts and what are some ways they might be able to monitor or control for these agency conflicts.
Capital asset pricing model with verizon beta coefficient : Using a capital asset pricing model (CAPM) with the Verizon Beta coefficient, the required rate of return for Verizon is 8.206%.
What is the levered value of the firm : The company is in the process of issuing $1,100,000 of bonds at par that carry a 6% annual coupon. What is the levered value of the firm?
What is the price of bond : Assume semiannual compounding periods. What is the price of the bond?
Putting together retirement financial plan : Your sister turned 35 today and is putting together a retirement financial plan.
Capital budgeting project-net present value of investment : Ella, Inc. is considering a new capital budgeting project (the “Investment”). What is the Payback Period? What is the Net Present Value of the Investment?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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