Expected long-run growth rate for this stock

Assignment Help Financial Management

Reference no: EM131562481

The next dividend payment by Incorrigible, Inc., will be $3.25 per share. If the expected long-run growth rate for this stock is 4.25 percent, and if investors require an 18 percent rate of return, what is the price of the stock today?

Reference no: EM131562481

Questions Cloud

Future value of initial deposit and annuity payment : Some said the answer is future value of initial deposit + future value of annuity payment, but some said only future value of annuity payment is enough.

What must the coupon rate be on bonds : The bonds make semiannual payments. What must the coupon rate be on the bonds?

Dividend is expected to grow at constant rate : The required rate of return on the stock is 17 percent. If the dividend is expected to grow at a constant rate, g, what is g?

Project incorrigible has an initial cost : Project Incorrigible has an initial cost, and then generates cash inflows of $50 a year for the next five years.

Expected long-run growth rate for this stock : If the expected long-run growth rate for this stock is 4.25 percent and if investors require an 18 percent rate of return, what is the price of the stock today?

Interest rates on eurodollar loans may be lower : Interest rates on Eurodollar loans may be lower than those on loans in the U.S. because:

Call option with strike price less than current spot price : A call option with a strike price less than the current spot price is said to be _____.

Transfer pricing has been used by multinational corporation : Transfer pricing has been used by multinational corporation to.

An advantage of netting of multinational corporation : An advantage of netting of a multinational corporation and its subsidiaries is that it:

User Account

All Pages