Currently pay dividends-what should the price of intel

Assignment Help Financial Management
Reference no: EM131497093

Intel Inc. does not currently pay dividends; however, investors expect that in four years, the firm will pay its first dividend of $2.50 per share. From that point onwards, the dividend is expected be $3 annually forever. Assume that investors required rate of return is 8%. What should the price of Intel be today?

Reference no: EM131497093

Questions Cloud

Discuss and critically analyse the court decision : HI6028 Taxation, Theory, Practice & Law Assignment. Discuss and critically ANALYSE the court/tribunal decision and the reason for the decision
Do you believe that affirmative action is justified : Do you believe that affirmative action is justified or unjustified? Explain why you feel this way, and use specific examples to illustrate your point.
What is the present value of the stock price at time : The discount rate on WD stock is 10%. What is the present value of the stock price at time 4?
Premium bond making semiannual payments : Bond X is a premium bond making semiannual payments. What is the price of each bond today?
Currently pay dividends-what should the price of intel : Intel Inc. does not currently pay dividends; however, investors expect that in four years, the firm will pay its first dividend of $2.50 per share.
What is the target share price five years : YGTB, Inc., currently has an EPS of $1.60 and an earnings growth rate of 7 percent. If the benchmark PE ratio is 21, what is the target share price five years.
What is the annualized rate of return of your investment : Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 5.7%. what is the annualized rate of return of your investment?
Experiencing rapid growth-what is stock price : Navel County Choppers Inc. is experiencing rapid growth. If the dividend per share just paid was $1.69, what is the stock price?
Should elrond buy and install machine press : Project Analysis. Elrond’s Machine Shop is considering a four-year project to improve its production efficiency. should Elrond buy and install machine press?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the investment

What is the value of the investment?

  How many outstanding shares will acquirer

Target Company is trading at $20 a share at the end of the year 2006 and has 1 million shares outstanding. Acquirer Corp. is trading at $50 a share and has 3 million shares outstanding. How many outstanding shares will Acquirer have if they are succe..

  Part of business is selling modems for network connection

Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing. A modem costs you $150 and holding a modem in inventory costs..

  What is relationship between a stated interest rate and APR

What is APR? what is the relationship between a stated interest rate and an APR? If stated rate is 4% per year , calculate the APR when interest rate is compounded (a) annually and (b) monthly ?

  Mutually exclusive projects your firm should undertake

You have been asked to determine which of the mutually exclusive projects your firm should undertake. The first one has a life of three years. It costs $150,000 and will generate cash flows of $70,000 per year. The other one has an investment of $715..

  What is the maximum it would be reasonable

What is the maximum it would be reasonable ( i.e., do no financial harm) for the owner of a building to pay for a new heated drive way system if it would save $1,577.35 per year in plowing charges. The owner's cost of money is 6%/yr. Assume the syste..

  What is the market rate of return on this stock

The common stock of Eddie's Engines, Inc. sells for $37.13 a share. The stock is expected to pay $3.10 per share next year. Eddie's has established a pattern of increasing their dividends by 5.2 percent annually and expects to continue doing so. What..

  Compute the payback statistic for project

Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 5 years.

  What is the retained earnings balance at the end of the year

Fields and Flowers had beginning retained earnings of $63,100. During the year, the company reported sales of $127,800, costs of $89,900, depreciation of $11,200, dividends of $2,800, and interest paid of $3,400. The tax rate is 35%. What is the reta..

  Is this decision to give the rebate wise one

Heavy Duty Company, a manufactured of power tools, decides to offer a rebate of $130 on its 16-inch mid-range chain saw, which currently has a retail price $490. The profit margin for Heavy Duty before the rebate is $180. Based on the information, is..

  What it the maximum interest rate you could be charged

You are looking to finance your home. The bank is offering a three-year ARM (adjustable-rate mortgage) with an introductory rate of 3.90%. What will your interest rate be after three years if the LIBOR rate does not change? In three years, what it th..

  Calculate and compare the financial ratios

calculate and compare the financial ratios listed further down this document for the fiscal year ending 2014, and prepare your comments about the two companies' performances based on your ratio calculations.

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