Communications is new firm in rapidly growing industry

Assignment Help Financial Management

Reference no: EM131905501

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 23 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $1.20 per share. What is the current value of one share of this stock if the required rate of return is 9.25 percent?

Reference no: EM131905501

Questions Cloud

Money affect financial planning-personal wealth management : How does the time value of money affect financial planning and personal wealth management? Response should include a discussion of each of time value concepts.

How are deferred taxes recorded on the balance sheet : Selling and administrative expenses include which of the following income statement items? How are deferred taxes recorded on the balance sheet?

Calculate expected standard deviation on stock : Calculate the expected standard deviation on stock:

Appraisal value of tract of land with current cash flow : Estimate appraisal value of tract of land with current cash flow rent of $80 per acre, nominal capitalization rate of 10% and inflation rate of 5%.

Communications is new firm in rapidly growing industry : Combined Communications is a new firm in a rapidly growing industry. What is the current value of one share of this stock if required rate of return is 9.25%

Sales method and aging of accounts receivable method : Estimating bad debts can be done by the percentage of sales method and the aging of accounts receivable method.

Rate of return-dividend growth and value of common stock : Discuss the relationship between the rate of return, dividend growth, and value of common stock.

What is the net present worth of project : The firm's tax rate is 41%, and its market interest rate is 15%. What is the net present worth of this project?"

Calculate wacc for both capital structures : What is the WACC of Potenza, if the company considers a capital structure of 50 percent common stock, Calculate WACC for both capital structures.

User Account

All Pages