Compute current value of per share of bloomz stock

Assignment Help Finance Basics
Reference no: EM132000577

Bloomz Co. just paid a dividend of $1.85 on its common stock. This company's dividends are expected to grow at a constant rate of 3.5% indefinitely. If the required rate of return on this stock is 12%, compute the current value of per share of Bloomz stock.

Reference no: EM132000577

Questions Cloud

Trace a sample of payroll checks to the payroll register : Compare days outstanding in inventory to previous periods and industry data.Trace a sample of payroll checks to the payroll register.
Current market price of the bonds : It is now five years later, and the current market rate of interest is 8.25%. What is the current market price (intrinsic value) of the bonds?
Determine how much the fra is worth : Determine how much the FRA is worth and discuss who will pay whom --the buyer pays the seller or the seller pays the buyer. Show all calculations.
Why might it become larger or smaller that the currently : Suggest some reasons why the capitalization rate might not remain constant. Why might it become larger or smaller that the currently prevailing rate?
Compute current value of per share of bloomz stock : If the required rate of return on this stock is 12%, compute the current value of per share of Bloomz stock.
What is the cost of common equity : The stock is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75), and the dividend is expected to grow at a constant rate of 3% .
What is the price of a? one-year american put option : a. What is the price of a? one-year American put option on XAL stock with a strike price of ?$77 per? share?
Summarize key aspects of the trade-off and pecking-order : Summarize key aspects of the trade-off and pecking-order theories. Also consider what games companies play while in great financial distress.
Should nicholas make the purchase : If the appropriate discount rate is 22 percent, what arc the IRK, NPV, and profitability index (PI) for this decision? Should Nicholas make the purchase?

Reviews

Write a Review

Finance Basics Questions & Answers

  Dollar amount of income

If London needs to have a total return of 0.22 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

  Many capital structure concepts

Select two of the many capital structure concepts such as Modigliani and Miller, Pecking Order Theory, leverage, and so on, and explain what each is as well as how it differs from the other concept you selected. Then, step back and discuss why it ..

  What is fisher investment in current assets

What is Fisher's investment in current assets? Determine Fisher's working capital investment. Determine Fisher's current ratio. Determine Fisher's return on stockholders' equity if its 2006 earnings after tax are$10,000(000).

  Company recognize on income statement

Randy's tireland makes a product that sells for $68 per unit and has $50 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?

  Find the market value of your position

You own $2,600,000 par amount of a bond with a remaining maturity of 22 years. Find the market value of your position if the price is 98-11?

  Find capm predicted expected return

If the risk free rate is 3% and the market risk premium is 5%, then the CAPM'S predicted expected return for Wyatt oil is closest to:

  Estimating the break even point

A corporation produces glue in eight ounce tubes. The total fixed costs for the production of the glue are $477,999.50.

  Purchase health insurance

Why or why not? Assuming that she does decide to purchase health insurance, which of the three policies would you recommend and why?

  Financial needs upon retirement

An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments. Ignore any social secu..

  What does interest rate risk mean

What relationship exists between changes in interest rates and bond prices?

  Explain the concept of bond price elasticity

What does this suggest about the market value volatility of mutual funds containing zero-coupon Treasury bonds versus high-coupon Treasury bonds?

  Understanding the notes to the balance sheet

Understanding the Notes to the Balance Sheet

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