Compute the present value of these dividends

Assignment Help Finance Basics
Reference no: EM13268143

Fresno Corp. is a fast-growing company that expects to grow at a rate of 21 percent over the next two years and then to slow to a growth rate of 16 percent for the following three years. If the last dividend paid by the company was $2.15.

What is the dividend for 1st year?

What is the dividend for 2nd year?

What is the dividend for 3rd year?

What is the dividend for 4th year?

What is the dividend for 5th year?

Compute the present value of these dividends if the required rate of return is 14 percent.

 

Reference no: EM13268143

Questions Cloud

What is rbw current ratio : RBW corp has cash of 48000 short term note payable of 35000 accounts receivable of 120000, inventories of 200000, and accurals of 90000. what is RBW current ratio?
At what price will the bonds sell in the marketplace : Coupon payments will be made annually. Investors buying the bonds today will earn a yield to maturity of 9.09 percent. At what price will the bonds sell in the marketplace.
Write down the formula for mean : The temperatre result in each measurement are listed below, write down the formula for mean and calculate the temperature mean value
What should be the market price of moriband stock : If investors in stocks of companies like Moriband require a rate of return of 17 percent, what should be the market price of Moriband stock?
Compute the present value of these dividends : Fresno Corp. is a fast-growing company that expects to grow at a rate of 21 percent over the next two years and then to slow to a growth rate of 16 percent for the following three years. If the last dividend paid by the company was $2.15.
Discuss the style of music played : Discuss the style of music played, e.g. jazz, metal, flamenco - describe the guitars and other equipment
What is the current market value of one of these bonds : Suppose the bond were to mature in 12 years. What will be the bond's price if rates in the market (i) decrease to 8.79 percent or (ii) increase to 12.79 percent.
Find the magnitude of the lift force acting on the plane : A jet airplane is in level flight. The mass of the airplane is m = 8830 kg. find the magnitude of the lift force acting on the plane
Obtain the average induced emf in the coil : A fixed 17.3-cm-diameter wire coil is perpendicular to a magnetic field 0.49T pointing up. In 0.15s , the field is changed to 0.33T pointing down. obtain the average induced emf in the coil

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of fixed operating cost and breakeven sales

Computation of fixed operating cost and breakeven sales and What is his breakeven level of sales at the level of fixed operating costs determined

  What are the benefits of organizing the business

You are approached by a client who would like to start his own business. The client plans to take the company public in five years. What are the benefits of organizing the business as a corporation?

  Tvm questions-present value

What is the present value of: $25,000 in 15 years at 8 percent? $1,000 in 40 periods at 20 percent?

  Bonds current yield and yield to maturity and valuation

Bonds current yield and yield to maturity and valuation and Assume that the yiel to maturity remains constant for the next 3 years

  Determine the conversion price

Chocolate corporation convertible debentures were issued at their $1,000 par value in 2007. At any time prior to maturity on February 1, 2027,

  Delphi technique in risk management

Assume you are bullish on Stock X and instruct your broker to buy 1,000 shares on margin, with a margin of 60 percent. The current price of a share of Stock X is $30, the interest on loans is 5 percent and discuss the Delphi technique in risk managem..

  What are cash receipts in march

if excel inc. has projected sales of $30,000 in january, $20,000 in february, and $20,000 in march 80% of sales are on credit 20% are collected in the month of sale and 80% are collected the month after, what are cash receipts in march?

  Determine the value of a privately held

Determine the value of a privately-held firm based on the following data: total market value of a comparable firm is $200,000; net income of a comparable firm is $40,000;

  Compute the taxable income of mason gifts and tax liability

Common stock, which had been purchased eight months earlier for $22,000, was sold for $30,000.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  What is the asset adjustment to a bank balance sheet

What is the asset adjustment to a bank's balance sheet if the bank sold a five-year, 7 percent annual coupon $100,000 bond acquired at par, but now yielding 8 percent? The bond was not in the mark-to-market portfolio.

  An aversion to risk or a high tolerance for risk

Given an individual risk profile, be it an aversion to risk or a high tolerance for risk

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