Determine stock value, Garrett Corporation has been going

Determine stock value

Reference no: EM1360334

Garrett Corp. has been going through a difficult financial period. Over the past three year, its stock price has dropped from $50 to $18 per share. Throughout this downturn, Garrett has managed to pay a $1 dividend each year. Management feels the worst is over but intends to maintain the $1 dividend for three more years, after which they plan to increase it by 6% per year indefinitely. Comparable stocks are returning 11%.

1. If these projections are accurate, is Garrett stock a good buy at $18?
2. How do you think the market feels about Garrett's management?

Reference no: EM1360334

Questions Cloud

Appropriateness of dual relationships : I need help in locating an article on dual relationships and a short summary. Can you please explain the debate concerning the appropriateness of dual relationships?

Research and recommend writing guide-forensics organization : Your manager has asked you to research and recommend a writing guide that examiners in your computer forensics organization will use for all official written reports.

What fraction of the heat is used to raise : Find out the rate of the wheel's rotation in revolutions per minute that will produce this effect.

Examples-positive reinforcement and negative reinforcement : Provide an explanation for how positive reinforcement and negative reinforcement are similar and what differentiates them from each other. In your explanation provide examples of positive reinforcement and negative reinforcement that could be used..

Determine stock value : Garrett Corporation has been going through a difficult financial period. Over the past three year, its stock price has dropped from $50 to $18 per share. Throughout this downturn, Garrett has managed to pay a $1 dividend every year.

Illustrate what is michelle''s opportunity cost of producing : Illustrate what is Michelle's opportunity cost of producing potatoes. What is Michelle's opportunity cost of producing chickens.

Explain sharp tongue and scathing attacks : Explain sharp tongue and scathing attacks and he bullies everyone and why you believe this approach will work

What is expected number of bits raw keys agree : phase 1 communication between Alice and Bob. Suppose the raw keys consist of k bits each. What is the expected number of bits on which Alice's and Bob's raw keys agree? Explain your answer.

Ethnicity and economic resources : How could increased awareness of cultural considerations related to ethnicity and economic resources improve the counseling intern's interactions with and understanding of the Gonzalez family?

User Account

All Pages