Determining stocks and dividends

Assignment Help Advanced Statistics

Reference no: EM13114991

1. Paid dividend of $2 per share. Expected to grow at a constant rate of 5% per year, and investors require a 15% rate of return on the stock. What is the stocks value?

2. Suppose the riskiness of the stock decreases, which causes the required rate of return to fall to 13%. Under these conditions, what is the stocks value?

3. Return to the original 15% required rate of return and assume a dividend growth rate estimate increase to 7% per year, what is the stock value?

Reference no: EM13114991

Questions Cloud

Effective leader behaviour depends on many variables : According to the leadership process, effective leader behaviour depends on many variables. It follows there is no simple prescription for effective leader behaviour.

Computing debt-equity ratio : Bob's warehouse has a pre-tax cost of debt of 8.4 percent and an unlevered cost of capital of 14.6 percent. the firm's tax rate is 37 percent and the cost of equity is 18 percent. What is the firm's debt-equity ratio?

Calculate confidence interval for mean nicotine content : The average value observed was 1.2 mg. If the sample variance is 0.04 mg, compute a 99% confidence interval for the mean nicotine content.

Elucidate what is the average force exerted on the ball : It bounces off with the same speed and angle. If the ball is in contact with the wall for 0.220 s, elucidate what is the average force exerted on the ball by the wall?

Determining stocks and dividends : Paid dividend of $2 per share. Expected to grow at a constant rate of 5% per year, and investors require a 15% rate of return on the stock. What is the stocks value?

Explain the communication privacy policies : Explain the communication privacy policies at your workplace, such as for e-mail and telephone use. How do the policies align to the best practices discussed in the readings

Find out displacement and average velocity : Then, 25 s later, the cyclist is 45 m due north of the flagpole, going due east with a speed of 12 m/s. For the cyclist in this 25 s interval, find out each of the following. (a) displacement (b) average velocity (c) average acceleration

Find the probability to earn bonus : He estimates that he/she has a 45% chance of success with each customer. What is the probability that he/she will earn his/her bonus today?

What is the radius in nanometers : The average radius of a molecule of lysozyme, an enzyme in tears is 1430pm,what is the radius in nanometers.

User Account

All Pages