Expected to pay the same amount of dividend

Assignment Help Financial Management
Reference no: EM13921505

ABC Inc. is expected to pay $1.51 dividend at the end of the year and it expected to pay the same amount of dividend forever. What is its stock price, assuming it has a required return of the stock is 9%?

Reference no: EM13921505

Questions Cloud

Prepare the statements using a vertical statements format : Prepare an income statement, statement of changes in equity, balance sheet, and statement of cash flows for the 2013, 2014, 2015, and 2016 accounting periods.
Present flowchart showing how to properly close-out contract : Explain how to determine if all requirements of a procurement contract have been fulfilled by the buyer and the seller. Present a flowchart showing how to properly close-out a contract
What price will the insurance charge in the market : What price will the insurance charge in this market? Who will buy the insurance? Assume for this problem that there are no binding regulations that limit insur- ance prices or force people to purchase insurance.
Quality is fitness for use : all activities are carried out by staff from our own organization.
Expected to pay the same amount of dividend : ABC Inc. is expected to pay $1.51 dividend at the end of the year and it expected to pay the same amount of dividend forever. What is its stock price, assuming it has a required return of the stock is 9%?
Define and describe the term computer based training : Define and describe the term "computer based training" (CBT). If you manage an international company with offices in another country, what are some of the practical applications for CBT?
Postcontractual information problems and agency costs : Postcontractual Information Problems and Agency Costs. It would not be in Sue and John's interest to hire another engineer.
Value-sustained competitive advantage for kudler fine food : How would you determine if a strategy has created value and sustained competitive advantage for Kudler Fine Foods?Locate an organization in the news and explain how it is trying to create value and competitive advantage in its sector.
What is the percentage change in price of bond : Both bond A and bond B have 6.6 percent coupons and are priced at par value. Bond A has 8 years to maturity, while bond B has 15 years to maturity. If interest rates suddenly rise by 1.2 percent, what is the percentage change in price of bond A and b..

Reviews

Write a Review

Financial Management Questions & Answers

  Show the cash flows on deal

Tony borrowed $10,000 from his sister at 8%, simple interest, and repaid the entire amount after 5 years. Show the cash flows on this deal.

  Discuss the concepts of risk and return

Define and discuss the concepts of risk and return, and discuss the importance of portfolio diversification and the relationship to risk and return.

  Zero debt financing-capital structure have on firms profit

Seattle Health Plans currently use zero debt financing. Its operating profit is $ 1 million, and it pays taxes at a 40% rate. It has $5 million in assets and because it is all equity financed, $ 5 million in equity. What impact would the new capital ..

  What is the duration of a bond with three years

What is the duration of a bond with three years to maturity and a coupon of 8.2 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your final answer to 5 decimal places. (e.g., 32.16161)).

  What is your total return on this investment

One year ago, you purchased 300 shares of Sith Brothers, Inc., at $51.64 a share. The stock paid a total of $660 in dividends during the year. Today, you sold your shares for $52.08 share. What is your total return on this investment?

  What is its dividend growth rate

If the price of Hanbags Inc. stock is $43, its required return is 20% and the last dividend paid was $3, what is its dividend growth rate?

  Sales from the contract are forecast

Sales from the contract are forecast at $380,000 each year. Variable costs are estimated at $250,000 the first year, and Jo believes they will decrease at the rate of $5000 per year, as they become expert in growing the new items in the new greenhous..

  Calculate the standard deviation in the anticipated return

James is considering whether to invest in a newly formed investment fund. The fund's investment objective is to acquire home mortgage securities at what hopes will be bargian prices. Based on these potential outcomes, what is your estimate of the exp..

  What is the yield to maturity on the companys debt

Use the following info. A corporation has 10,000,000 shares of stock outstanding at a of $60 per share. They just paid a dividend of $3 and the dividend is expected to grow by 6% per year forever. What is the required return on corporation's stock? W..

  Current assembly system-vibration isolation platforms

A small company that manufactures vibration isolation platforms is trying to decide whether it should upgrade the current assembly system (System D), which is rather labor-intensive, with one that is more highly automated (System C). Some components ..

  Nonrecurring items-indicate appropriate accounting treatment

For each of these nonrecurring items, give an example and indicate (match with) the appropriate accounting treatment.  Extraordinary item. Prior period adjustment. Change in accounting estimate. Shown net as a separate line item between net income an..

  Cost of capital for the valuation of the collinsville plant

The average unlevered beta of publicly traded Sodium Chlorate businesses is 0.94. Assume zero debt betas. The target capital structure that is appropriate for Collinsville plant is 35% debt and 65% equity. What is the appropriate cost of capital for ..

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