Dividend policy-what is the price of this stock

Assignment Help Financial Management

Reference no: EM13804001

ABC, Inc. has just set the company dividend policy at $0.70 per year. The company plans on being in business forever. What is the price of this stock if

a. an investor wants a 7% return?

b. an investor wants an 9% return?

c. an investor wants a 11% return?

Reference no: EM13804001

Questions Cloud

Compile all assessments from previous weeks and synthesize : Compile all assessments from previous weeks and synthesize them into a 10,000 word comprehensive organizational security plan. Include an introduction and conclusion, as well as the final budget.

What annual dividend will they have to promise : ABC wants to raise $12 million from the sale of preferred stock. If the ABC wants to sell 1 million shares of preferred stock, what annual dividend will they have to promise if investors demand

Currently pay dividends-future dividend stream : Peterson Packaging Incorporated does not currently pay dividends. The company will start with a $0.50 dividend at the end of year three and grow it by 10% for each of the next six years until it nearly reaches $1.00. After six years of growth, it wil..

Summarize health care reform material : Prepare a Microsoft® PowerPoint® presentation in which you summarize health care reform material.

Dividend policy-what is the price of this stock : ABC, Inc. has just set the company dividend policy at $0.70 per year. The company plans on being in business forever. What is the price of this stock if

State when first emerged as individual with filll personhood : State when you first emerged as an individual with filll personhood? When will that personhood cease to be as you approach the end of your life?

Assignment descriptive statistics paper : Assignment Descriptive Statistics Paper

Demonstrate the functionality of the course : The essence of your case analysis is to demonstrate the functionality of the course (Managerial Economics). That is, the applicability of what you have been taught in class. As such, your paper must be empirical by nature, well structured, and reflec..

Issue a bond with semi-annual coupon payments : XYZ Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 9%, and par value of $1,000. The yield-to-maturity for this bond is 11%. What is the price of the bond if the bond matures in five, ten, fifteen, or twenty years?

User Account

All Pages