Estimate of the current stock price

Assignment Help Finance Basics
Reference no: EM131891000

ABC Company just paid a dividend of $4 per share, and that dividend is expected to grow at a constant rate of 4% per year in the future. The required return on equity market is 9.5%, the risk-free rate is currently 3.5% and the company is beta is 1.75. What is your estimate of the current stock price?

Reference no: EM131891000

Questions Cloud

What is the cost of external equity : If flotation costs are 10.0% of the issues gross proceeds, what is the cost of external equity?
What is the amount of annual payment that sarah must make : Sarah just graduated from college. What is the amount of annual payment that Sarah must make at the end of each year for 7 years
What will the price be for this bond in 5 years : Let's assume that in 5 years, the YTM on this increases to 5.24%. What will the price be for this bond in 5 years?
What is the value of the firm tax shield : The firm's tax rate is 36 %. What is the value of the firm's tax shield (i.e. the change in firm value due to the use of leverage in the capital structure)?
Estimate of the current stock price : The required return on equity market is 9.5%, the risk-free rate is currently 3.5% and the company is beta is 1.75. What is your estimate of the current stock p
What is the profitability index of the investment : You are offered an investment with returns of $ 1,184 in year 1, $ 3,447 in year 2, what is the Profitability Index of the investment?
What is the amount of cash that buyer pays the seller : A sales invoice included the following information: merchandise price, $68,000; what is the amount of cash that buyer pays the seller
How can we fix a moral hazard problem using debt : How can we fix a moral hazard problem using debt? What if marketable debt (issuing bonds) doesn't provide enough monitoring or bonding to fix the problem?
Describe the market placement of your product : Describe the market placement of your product. This can be integrated into your pricing strategy argument.

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