User Account

All Pages

Compute the value of one share of gis stock

Assignment Help Accounting Basics
Reference no: EM131920477

Question - General Mills (NYSE: GIS) is a large manufacturer and distributor of package consumer food products. Benoit Gagnon, a buy-side analyst covering General Mills, has studied the historical growth rates in sales, earnings, and dividends for GIS, and also has made projections of future growth rates. Gagnon expects the current dividend of 1.10 per share to grow at 6 percent for the next two years, and that the growth rate will decline to 3 percent and remain at that level thereafter. The risk-free rate is 4%, the market risk premium is 6%, and GIS's beta, assumed to be 0.50.

Compute the value of one share of GIS stock using Dividends Valuation Approach.

Reference no: EM131920477

Questions Cloud

Compute depreciation expense : Hadicke Company purchased a delivery truck for $45,000 on January 1, 2012. Compute depreciation expense using the double-declining-balance method
How many outcomes are there for the chance event : What is the decision to be made, what is the chance event, and what is the consequence for this problem?
How many pounds of raw materials should be purchased in july : If 105,200 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
How has monetary transmission mechanism evolved over time : Summarize the main points of How Has the Monetary Transmission Mechanism Evolved Over Time - some of the key papers in the chapter in more detail Critique
Compute the value of one share of gis stock : The risk-free rate is 4%, the market risk premium is 6%, Compute the value of one share of GIS stock using Dividends Valuation Approach
What risks are present in the proposal : Assume that Otis decided to accept this proposal. Identify and discuss the most appropriate relationship that you would recommend for Otis and JLPTC.
How many avis buses are traveling to and from the airport : Avis Company is a car rental company that is located three miles from the Los Angeles airport (LAX).
What is total stockholders equity : Moretown, Inc. had the following transactions in? 2017, its first year of operations: At the end of? 2017, what is total stockholders' equity?
How could you use a value-driven approach : Assume that you are hired as a consultant to help Steinway deal with these latest problems. How could you use a value-driven approach to help.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd