Expected to affect any other future dividends

Assignment Help Financial Management

Reference no: EM131585799

MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.25, all future dividends are expected to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $24.00 per share that is not expected to affect any other future dividends, what should the stock price be? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131585799

Questions Cloud

Choose one personality disorder : Choose one personality disorder and, using scholarly resources, list and read at least three articles specifically addressing that disorder.

Identify the factors affecting production and costs : Identify the factors affecting production and costs in the short run to determine which single factor has the greatest impact on the widest variety of companies

Is there a flow that achieves the upper bound : From the flow out of the source and the flow into the sink in Example, we know that the maximum flow is at most 9.

Interpret the characteristics that dillards : Identify the hard and soft technology and interpret the characteristics that Dillards should have/use to be successful in its domestic and global environment?

Expected to affect any other future dividends : If the firm just announced that the next dividend will be extraordinary dividend of $24.00 per share that is not expected to affect any other future dividends

Discuss two challenges associated with treating a person : Discuss at least two challenges associated with treating a person diagnosed with a personality disorder.

Put the same thing in your own words : Use the following outline for your EACH of your numbered answers:

Calculate the price elasticity of demand : Using the midpoint formula, calculate the price elasticity of demand for Scenario 1 and Scenario 2

Compare and contrast the three approaches to account : Compare and contrast the three approaches to account for interest cost during the five-year period, and give your opinion of the method that you believe.

User Account

All Pages