Common stock and expects to continue paying dividends

Assignment Help Financial Management

Reference no: EM13944982

A firm just paid $2.00 on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now to infinity. If the required rate of return for the stock is 9%, then the value of the stock is:

Reference no: EM13944982

Questions Cloud

Average collection period and the average payment period : You know the following. ATO, ITO and FATO are 2, 6, and 2.5 respectively while for the industry they are 4.4, 19 and 4 respectively. The current ratio and quick ratio are 1 and 1.5 for the firm and 2.3 and 2.0 for the industry respectively. Net profi..

Discuss the research method needed to test : You can make suggestions for research hypotheses and discuss the research method needed to test them.

Preferred stock which pays-cops drops : We have a preferred stock which pays $ 8 per year. When we buy it, the cops is 8% .We keep it for 2 years and then sell it. At that time, cops drops to 4%. What is the price we sell it at? If the stock is called after 4 years at 120%, if the cops is ..

Average braking distance for a small car : It is advertised that the average braking distance for a small car traveling at 65 miles per hour is less than 120 feet. A transportation researcher wants to determine if the statement made in the advertisement is false. She randomly test drives 3..

Common stock and expects to continue paying dividends : A firm just paid $2.00 on its common stock and expects to continue paying dividends, which are expected to grow 5% each year, from now to infinity. If the required rate of return for the stock is 9%, then the value of the stock is:

Description for a production supervisor : Prepare a position description for a production supervisor which accurately reflects the role requirements in accordance with organizational procedure and WHS considerations

Project with cash flows and required return : What is the net present value of a project with the following cash flows and a required return of 11 percent?

Importance of emerging markets in the world economy : In response to the rapidly growing importance of emerging markets in the world economy, a number of new models of multinational enterprise (MNE) strategy have been put forward.

What is the total percentage return for the investment : Suppose you purchase 800 shares of stock at a price of $20 per share. One year later, the shares are selling for $23 per share. In addition, a dividend of $2 per share is paid at the end of each year. What is the capital gains yield for the investmen..

User Account

All Pages