Constant rate is stock expected to grow

Assignment Help Financial Management

Reference no: EM131898752

A. Carnes Cosmetics Co.'s stock price is $37.56, and it recently paid a $2.25 dividend. This dividend is expected to grow by 18% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131898752

Questions Cloud

Hat is nominal interest rate on five-year treasury security : hat is the nominal interest rate on a 5-year Treasury security?

Calculate interest rate on seven-year treasury securities : Calculate the interest rate on a 7-year Treasury securities.

Considering some new equipment : Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

What would be katydid before-tax component cost of debt : What would be Katydid’s before-tax component cost of debt? What is the default risk premium on the corporate bond?

Constant rate is stock expected to grow : Carnes Cosmetics Co.'s stock price is $37.56, At what constant rate is the stock expected to grow after Year 3?

What is the expected rate on three year treasury securities : What is the expected rate of inflation in year 2? What is the expected rate on three year treasury securities, 2 years from now?

What is break-even cost per kilowatt-hour : You require a return of 11 percent and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour?

Perform step three of the revenue recognition model : Perform step three of the revenue recognition model and determine the transaction price

Explain hedge and compare with the hedged : Determine the cost to acquire silver of 2,000,000 ounces. Explain this hedge and compare with the hedged in (1) ~ (5).

User Account

All Pages