Estimate of mc donald current stock price

Assignment Help Finance Basics
Reference no: EM133076539

McDonald's last year EPS was $7.88, and it is expected to grow at 4.5% for next 2 years and at 3% for the following 2 years. Year 4 dividend is expected to grow at 2% in perpetuity. Dividend payout ratio is expected to remain constant at 60%. If cost of equity is 6.5%, what is the best estimate of Mc Donald's current stock price?

Reference no: EM133076539

Questions Cloud

What are the net benefits : Five years ago, a borrower had a mortgage of $80,000 at 10% for a time period of 30 years Currently, the market rate is 8% on 25-year mortgages.
Installing gui hash generator-public key infrastructure : Explore the world of Hashing. Complete the Hands-On Project 3-3 "Installing GUI Hash Generators and Comparing Digest" from the textbook.
Determining the fund manager risk position : -What position should the fund manager take if the beta of the fund manager's risk position is 1.5?
Effect of taking on a loan : Where she might obtain financing for a vehicle loan?4. The effect of taking on a loan on her overall financial planning?
Estimate of mc donald current stock price : Dividend payout ratio is expected to remain constant at 60%. If cost of equity is 6.5%, what is the best estimate of Mc Donald's current stock price?
What are components of active listening : What are the 3 usual response strategies to difficult people? What are the components of active listening?
Determining the arbitrage opportunity : b) What would the Italy interest rate have to be so that there would be no arbitrage opportunity? (Show steps of your transactions)
Question on google fitbit : Google Fitbit: Was this a good deal for Google? Did it make sense? And did they overpay or underpay (no financial analysis needed here--just read the case, look
Compare agile models versus structured methods : Describe Prototyping. Compare Agile Models versus Structured Methods. Describe Data Flow Diagrams.

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!

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