Compute value of this stock with required return

Assignment Help Financial Management

Reference no: EM131957954

A firm is expected to pay a dividend of $2.15 next year and $2.30 the following year. Financial analysts believe the stock will be at this price target of $80 in two years. Compute the value of this stock with a required return of 12.1 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131957954

Questions Cloud

Cash for the transaction above short proceeds : You borrow all needed cash for the transaction above the short proceeds at an interest rate of 4.8%.

Weighted average cost of capital of two asset portfolio : The annual cost of capital for these cash flows is 8%. What is the weighted average cost of capital of this two asset portfolio?

What is this stream of cash flows worth today : Suppose that one year from now you receive $450. what is this stream of cash flows worth today?

How much is this stream of cash flows worth today : Suppose that for each of the next 10 years you will receive $250. If the opportunity cost of capital is 5% how much is this stream of cash flows worth today?

Compute value of this stock with required return : Compute the value of this stock with a required return of 12.1 percent.

Make in order to earn available arbitrage profit : If the forward contract is available at a price of $51, what three transactions should you make in order to earn the available arbitrage profit?

What is the price of prepaid ten month forward : The continuously compounded interest rate is 4.2%. What is the 10-month forward price? What is the price of a prepaid 10-month forward?

Review the notes related to the firm financials : Locate the most recent 2017 financials for Kimberly-Clark and review the notes related to the firm’s financials.

What is the highest interest rate she is able to pay : A student needs to borrow $3500 for living expenses for a study-abroad program in Hong Kong. What is the highest interest rate she is able to pay?

User Account

All Pages