Computing price and rate of return of stock

Reference no: EM13115546

1) Megan made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.16 a share. Secondly, the company announced that all future dividends will increase by 4% annually. What is the maximum amount you should pay to purchase a share of Megan's stock if your goal is to earn a 10% rate of return?

2) The common Stock of Eddies Engines, Inc. Sells for $25.71 a share. The stock is expected to pay $1.80 per share next month when the annual dividend is distributed. Eddie's has established a pattern of incrasing it dividends by 4% annually and expects to continue doing so. What is the market rate of return on this stock?

Reference no: EM13115546

Questions Cloud

What mass of co2 will be produced : Fe3O4(s) + 4CO(g) --> 4CO2(g) + 3Fe(s). In this reaction, if 335.2 g Fe3O4 is reacted with excess CO, what mass of CO2 will be produced.

What is the probability that the next child : A man with a cleft chin marries a normal-chined woman and they have 10 children, all with cleft chins. a.) Can you be sure the man is homozygous? Explain. b.) If the 11th child has a cleft chin, will that prove that the father is homozygous? Expla..

What is the rate constant for this reaction : The reactant concentration in a zero-order reaction was 7.00×10-2 after 105 and 1.50×10-2 after 350 . What is the rate constant for this reaction.

Elucidate what is the magnitude of the normal force exerted : Elucidate what is the magnitude of the normal force exerted on the car by the walls of the cylinder at point A (at the bottom of the vertical circle)? and at point B (at the top of the vertical circle)?

Computing price and rate of return of stock : Megan made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.16 a share.

Describe a risk management plan : Mr. Bertschi, I am very sorry but Joe, my tractor driver, you know the person that was digging the postholes? NO, NO, he didn't hit the TV cable, and I know that we were supposed to stay off the neighbor's yard, BUT, he got the tractor stuck up to..

What will the phenotype ratio of kittens be : In cats, coat color is an X-linked trait. Black coat color is determined by allele X^B and yellow is generated by the X^b allele. Black and yellow are co-dominat; heterozygous cats have a tortoise shell coat.

Find probability that a resident plays poker : If 45% of the residents play poker and garden and 50% of the residents play both shuffleboard and poker, find the probability that a resident plays poker, given that they garden (that is, find P(poker | garden)

Calculate the number of tons of carbon dioxide produced : In 1986 an electrical power plant in Taylorsville, Georgia, burned 8,376,726 tons of coal, a national record at that time.

User Account

All Pages