Expected one-year holding-period return on sport stock

Assignment Help Financial Management
Reference no: EM131882845

The expected rate of return on the market portfolio is 18%, the risk-free rate is 6.00%, and the stock of SportX Corporation has a beta coefficient of 1.70. Last month SportX announced their latest earnings of $18 per share. The company pays out 50% of its earnings in dividends. The dividends were just paid (2 weeks ago) and are expected to be paid annually. You estimate that SportX will earn an ROE of 24% per year on all reinvested earnings forever

If the market price of a share is currently $69, what is your expected one-year holding-period return on SportX stock?

Reference no: EM131882845

Questions Cloud

What is the process for the selected method : What is the process for the selected method? Describe and explain in detail using a step-by-step process.
Experiencing rapid growth- what is the stock price : Navel County Choppers Inc. is experiencing rapid growth. If the dividend per share just paid was $2.12, what is the stock price?
Determine the claims of the tenant and the landlord : What are the legal considerations you would evaluate to determine the claims of the tenant and the landlord? In whose favor would you rule, and why?
Explain the stock valuation technique : Mr. Jones is 35 years old, married with two children, and would like your help in planning a long-term investment strategy with the $100,000 he has to invest.
Expected one-year holding-period return on sport stock : If the market price of a share is currently $69, what is your expected one-year holding-period return on SportX stock?
Common stock in single annual installment : Suppose a company currently pays an annual dividend of $4.00 on its common stock in a single annual installment, and management plans on raising this dividend
Discuss how you feel about wal-marts alternative strategies : How do you think their Information Management Systems have contributed to their success?
Explain the clarity of the assignment parameters : College students require a unique approach to education. You will examine the sample syllabus provided. When reviewing the syllabus, pay particularly.
What is one share of stock worth today at required return : What is one share of this stock worth today at a required return of 18.5%?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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