User Account

All Pages

Discount rate applied to its stock

Assignment Help Finance Basics
Reference no: EM131757743

Finance question: Ed's Bait Shoppe had earnings this year of $5,000,000. From this it paid out $3,000,000 in dividends. This payout is representative of its typical dividend policy. You think Ed's earnings will grow at 4% annually. This discount rate applied to its stock is 15%. How much would you be willing to pay for a share if there are 15 million shares outstanding?

Reference no: EM131757743

Questions Cloud

Analyze the effect of each transaction on assets : Analyze the effect of each transaction on assets, liabilities, and stockholder's equity: Selected transactions for Thyme Advertising Company, Inc.
The best form of business organization : Assume that you need $100,000 to get started and while you have $10,000 of your own, somehow you will need to "find" the other $90,000.
Discounted back to the present at 9 ?percent : What is the present value of ?$600 to be received 9years from now discounted back to the present at 9 ?percent? Round to the nearest? cent
Broeing response for the research directive : After consulting with the students, Broeing negotiates for the right to pay an additional sum of money to hire an extra student for a portion of the research.
Discount rate applied to its stock : This discount rate applied to its stock is 15%. How much would you be willing to pay for a share if there are 15 million shares outstanding?
Define delta property and risk tolerance : Mr. Schellburger, the CEO of Schellburger Oil, is facing a dilemma-he is not sure whether or not he should drill an oil well.
Prepare a very detailed manufacturing cost variance analysis : Prepare a very detailed manufacturing cost variance analysis. All variances should be marked with either an F for favorable or U for unfavorable.
Commercial bank when securitizing loans : 1. Identify and describe three ways that finance companies overcome asymmetric information problems in order to raise financing.
What is the pretax cost of debt : The bond currently sells for 95 percent of its face value. The company's tax rate is 35 percent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd