Compute the price of the companies stock

Assignment Help Finance Basics
Reference no: EM13287094

A company already paid a $6 dividend per share this year and expects dividens to grow 10% annually for the next four years and 7% annually thereafter. compute the Price of the companies stock (Note; the required rate of return on this stock is 11%)

Reference no: EM13287094

Questions Cloud

Design a simple 4-bit binary divider takes two numbers : design a simple 4-bit binary divider , takes two numbers from only 0 to 9. This circuit will perform A/B and B > A will give zero, the answer will be just the integer part ( for example : o111 / 0010 = 0011 ).
Compute the freezing point and boiling point : Assuming 100% dissociation, calculate the freezing point and boiling point of 3.27 m AgNO3(aq). Constants may be found here.
Include a brief overview of different delivery methods : Organizations can avoid investing in training and development activities because it is difficult to quantify the ROI
Find the distance between the door centers : A building has two open doors facing the bay. The walls of the building absorb sound well, so multiple reflections can be ignored. find the distance d between the door centers
Compute the price of the companies stock : A company already paid a $6 dividend per share this year and expects dividens to grow 10% annually for the next four years and 7% annually thereafter. compute the Price of the companies stock (Note; the required rate of return on this stock is 11%..
Explain nonelectrolyte solute is dissolved in water : When 2.11 g of a nonelectrolyte solute is dissolved in 365 mL of water at 25 °C, the resulting solution exerts an osmotic pressure of 845 torr
Calculate efficiency of the motor and generated voltage : A 10-hp, 230 V, 60 Hz, three phase Y- connected, synchronous motor delivers full load at a power factor of 0.707 leading. The synchronous reactance of the motor is j5 Ω per phase. The rotationnal loss is 230W and the field winding loss is 70W.
How many dark fringes are observed : An airplane can be made invisible to radar by coating the plane with a thin layer of an antireflective material. How many dark fringes are observed when 600 nm light illuminates the slides from directly above
How many dark fringes are observed : An airplane can be made invisible to radar by coating the plane with a thin layer of an antireflective material. How many dark fringes are observed when 600 nm light illuminates the slides from directly above

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate current income and capital gain or loss

Suppose you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received three dividend payments $2.70,

  Computation of gains on transfer of assets

Computation of gains losses on transfer of assets and What are the amount and character of the gains and When does the holding period for the stock begin

  What would be the cost of retained earnings equity

Explain what would be the cost of retained earnings equity for Tangshan Mining if the expected return on U.S. Treasury Bills is 5.00%, the market risk premium is 10.00 percent, and the firm's beta is 1.3

  Were the price changes the same

What is the value of your portfolio? What happens to the value of your portfolio if the yield to maturity on the bonds rises by one percentage point?

  What are the elements of the capital budgeting process

What are the elements of the capital budgeting process? How would you conduct a capital budgeting analysis for a global project?

  What is the maximum initial investment

What is the maximum initial investment for which this project is acceptable if the pre-tax required return on debt is 8% and the required return on equity is 18%?

  What is the approximate yield to maturity

What is the approximate yield to maturity for a 9-year bond that pays 9 interest on a $1000 face value annually if the bond sells for $900?

  Computation of expected returns and variances and covariance

Computation of expected returns and variances and covariance of stocks and Choose your own risk aversion coefficient

  What would the risk-free rate have to be

Stock Y has a beta of 1.25 and an expected return of 12.6 percent. Stock Z has a beta of .8 and an expected return of 9.9 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

  Discuss the concept of enterprise risk management

Discuss the concept of Enterprise Risk Management. Do you see advantages or disadvantages to this approach to managing risk? Why?

  Determination of the basis point spread

Determination of the basis point spread of two securities with different maturities discount and premium based on their yields to maturity.

  How many new retail outlets would be necessary to break

A final suggestion is a make a 10% across-the-board price reduction. By how much would dollar sales have to increase to maintain Alliance's current contribution.

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