Evolutionary new way to get in shape without exercising

Assignment Help Financial Management
Reference no: EM131851644

Get In Shape, Inc. just came up with a revolutionary new way to get in shape without exercising. The current dividend is $3.00 per share. Analysts are predicting 30% growth in the stock of GIS for the next three years, then after that, growth is expected to level off at 6%. The rate expected in the marketplace for stock such as GIS is 8%.

What is the current value of a share of Get In Shape, Inc.? ___

What will the value of a share be in year 4? ____

What will the value be in year 6? _____

Reference no: EM131851644

Questions Cloud

Manufacturing business at the inception of the technology : Charles Enterprises got into the drone manufacturing business at the inception of the technology
What is its enterprise value : If Company L’s WACC is 10%, and the firm has no non-operating assets, what is its enterprise value?
What is the firm balance of current assets : What is the firm’s balance of current assets?
What is most you would pay for share of standard oil stock : These dividends are consistent with their historical growth rate in dividends. what is the most you would pay for a share of STO stock today.
Evolutionary new way to get in shape without exercising : Get In Shape, Inc. just came up with a revolutionary new way to get in shape without exercising. What is the current value of a share of Get In Shape, Inc.?
Income goal using level payment savings approach : What is the annual payment needed at the end of each year to meet the client’s retirement income goal using a level payment savings approach?
What would be the effect of that market reaction : What would happen? How would the market react, and what would be the effect of that market reaction?
What is the firm operating cash flow : Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.10 million, what is the firm’s operating cash flow?
How much would this amount differ from simple interest : how much interest would be earned in the third year? How much would this amount differ from simple interest?

Reviews

Write a Review

Financial Management Questions & Answers

  Is such research a public good

Which of the following do you consider pure public goods? Private goods? Why?

  What would be third year future value

What would be the third year future value?

  How much of given amount represents interest

Assuming an 8% return, how much would Barry have if he could invest an additional $1,000 per year that his employer would match beginning at age 35?

  What is yield to maturity at current market price

What is the yield to maturity at a current market price of $868?

  Projects have the same risk

Jackson Inc. uses only equity capital, and it has two equally sized divisions. Division A’s cost of capital is 10.0%, Division B’s cost is 14.0%, and the composite WACC is 12.0%. All of Division A’s projects have the same risk, as do all of Division ..

  Calculate the payback period and profitability index

Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine.

  All future dividends are expected to grow

Johnny Cake Ltd. has 12 million shares of stock outstanding selling at $19 per share and an issue of $60 million in 9 percent annual coupon bonds with a maturity of 16 years, selling at 93.5 percent of par. Assume Johnny Cake’s weighted-average tax r..

  Calculate the earning per share one-year ahead

The current price of Parador Industries stock is $57 per share. Calculate the earning per share one-year ahead and the P/E ratio one-year ahead.

  Indicate the one with the least default risk

The following entities are planning to sell bonds; indicate the one with the least default risk?

  Expanding rapidly-currently needs to retain all of earning

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.75 coming 3 years from toda..

  What monthly payment made at the end of each month

What monthly payment made at the end of each month to an account that pays 7.5% compounded monthly will achieve his objective?

  What fraction of all elevator rails will meet specifications

An elevator company produces elevator rails. To meet specifications, an elevator rail must be between 0.995 inches and 1.005 inches in diameter. Suppose that the diameter of an elevator rail follows a normal random variable with mean of 1 inch and st..

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