Current price of stock problem

Assignment Help Financial Management
Reference no: EM13164846

QUESTION 1

a. The current price of Yusof Corporation stock is RM26.50 per share. Earnings next year should be RM2 per share and it should pay a RM1 dividend. The P/E multiple is 15 times on average. What price would you expect for Yusof Corporation’s stock in the future?

b. You are planning to purchase the stock of Tee’s Inc. and you expect it to pay a dividend of RM3 in 1 year, RM4.25 in 2 years, and RM6.00 in 3 years. You expect to sell the stock for RM100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?

c. Nico Corporation’s common stock is expected to pay a dividend of RM3.00 forever and currently sells for RM21.42. What is the required rate of return?

QUESTION 2

The Tapley Tank Company's last dividend was RM2.00. The dividend growth rate is expected to be constant at 25% for 3 years, after which dividends are expected to grow at a rate of 7% forever. Tapley's required return (rs) is 11%. What is Tapley's current stock price?

QUESTION 3

Kholdy Inc's bonds currently sell for RM1,275. They pay a RM120 annual coupon and have a 20-year maturity, but they can be called in 5 years at RM1,120. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between the bond's YTM and its YTC? 

Reference no: EM13164846

Questions Cloud

Calculate the percent yield : Calculate the percent yield of if the reaction produces 169g of C2H5Cl .
How many photons strike the leaf every second : solar radiation is 1200 , how many photons strike the leaf every second? Assume three significant figures and an average wavelength of 504 for solar radiation.
Calculate how much heat is released calcium and oxygen react : Calculate how much heat is released when this reactions occurs at a constant temperature of 25.00 degree Celicus in a constant-volume container.
What is heat capacity of the calorimeter inclusing the water : A calorimeter containing 200.0 mL of water was calibrated by carrying out a reaction which released 15.6 kJ of heat. If the temperature rose 3.25 degrees celcius then the heat capacity of the calorimeter inclusing the water is?
Current price of stock problem : The current price of Yusof Corporation stock is RM26.50 per share. Earnings next year should be RM2 per share and it should pay a RM1 dividend. The P/E multiple is 15 times on average. What price would you expect for Yusof Corporation’s stock in the ..
How many grams of sodium fluoride are in a toothpaste : the active ingredient in toothpaste is sodium fluoride, an anticavity agent. a 170 g tube of toothpaste lists the concentration of sodium fluoride a s0.24%. how many grams of sodium fluoride are in a toothpaste.
Calculate the amount of hcn formed : If a sample of 0.188 grams of KCN is treated with an excess of HCL, calculate the amount of HCN formed, in grams.
Compute the inimum temperature : calculate the inimum temperature at which this process will be spontaneous under standard conditions. Assume that Delta Ho and Delta So do not vary with temperature.
Write a scheme funtion that takes a list : Write a Scheme funtion that takes a list and an atom as parameters and returns a list identical to its parameter list except with all top level instances of the given atom deleted

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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