Expectation of the price of the stock

Assignment Help Finance Basics
Reference no: EM131473183

A share of stock with a beta of .76 now sells for $51. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 3%, and the market risk premium is 6%. If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year?

Reference no: EM131473183

Questions Cloud

Calculate the monthly payment : Calculate the monthly payment, total paid as to extinguish the loan, and the amount of interest -  how to understand their own mortgage.
What is the stock price today : If the required rate of return for this company is 10% and the return on earning is 15% what is the stock's price today?
Required rate of return : What is the value of a 10-year, $1000 par value bond with a 10% annual coupon if its required rate of return is 10%?
What is the corporate receipt doctrine : Meet Pull My Finger® Fred. He is a white, middle-aged, overweight man with black hair and a receding hairline, sitting in an armchair wearing a white tank.
Expectation of the price of the stock : If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year?
New manufacturing facility as production superintendent : You have recently been promoted and transferred to a new manufacturing facility as Production Superintendent.
Replication approach and a sample approach : Explain the difference in bond indexing using the full-replication approach and a sample approach.
What is the price if a markup : Demand is estimated to be 138,000 units annually. What is the price if a markup of 35% on total cost is used to determine the price?
What micro environmental and macro environmental factors hav : What micro environmental and macro environmental factors have affected Sony's performance since 2000.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the after-tax cost of purchasing

It would be depreciated under MACRS using a 5-year recovery period. The firm would pay $5,000 per year for a service contract that covers all maintenance costs. There is no salvage value. Q2. Compute the after-tax cost of purchasing.

  The lo sun corporation offers a 10 percent bond with a

the lo sun corporation offers a 10 percent bond with a current market price of 896.37. the yield to maturity is 11.34

  Three eye-ear-nose-and throat physicians decide to hire an

using the below assumptions prepare a three-level forecast and document your calculations.three eye-ear-nose-and throat

  Indicate whether each transaction relates to a deferred

hannah companys annual accounting year ends on june 30. it is june 30 2012 and all of the entries for the current year

  Calculate the monthly payment for the loan

Suppose you decide to purchase a home and you secure a 30-year, $285,000 loan at an annual interest rate of 6.5%.

  What is current weighted average cost of capital of america

What is the current weighted average cost of capital (WACC) of American Exploration?

  Evaluate a home country''s multinational corporations

Evaluate a home country's multinational corporations as a tool for international diversification.

  How many shares will remain after the repurchase

How many shares will remain after the repurchase? Round your answer to the nearest whole number.

  What is the amount of stately''s dividend per share

The stock of Up-and-Away Inc. is selling for $80 per share, and it is currently paying a quarterly dividend of $0.25 per share. What is the dividend yield on Up-and-Away stock?

  Calculate bear earnings per share

Calculate Bear's Earnings Per Share for next year assuming the firm raises $60 Million of new debt at an interest rate of 9 percent

  Impact of rupiah depreciation on bakrie

Assess the likely impact of the rupiah's depreciation on Bakrie's three different businesses. Which of Bakrie's businesses will be most hurt by the rupiah's fall? Will any of these businesses actually benefit from rupiah depreciation?

  What were cash proceeds received from the issuance of note

The terms provide for semiannual installment payments of $85,242. What were the cash pro- ceeds received from the issuance of the note?

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