Experiencing rapid growth-what is the projected dividend

Assignment Help Financial Management
Reference no: EM13987727

Perfectly Soft Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 20 percent over the following year, and then 6 percent per year thereafter indefinitely. The required return on this stock is 11 percent, and the stock currently sells for $35.1 per share. What is the projected dividend for the coming year?

Reference no: EM13987727

Questions Cloud

Forward rate will interest rate parity hold : Please explain with details and formula: If annualized interest rates in the U.S. and France are 9% and 13%, respectively, and the spot value of the franc is $.1109, then at what 180 day forward rate will interest rate parity hold?
What is the present value and discount rate : What is the present value of $140,000 to be received after 30 years with a 14 percent discount rate? Would the present value of the funds in part a be enough to buy a $2,900 concert ticket?
What is the value of the quick ratio : Russell's Deli has cash of $136, accounts receivable of $87, accounts payable of $215, and inventory of $409. What is the value of the quick ratio?
Assume that interest rate parity holds : Assume that Interest Rate Parity holds. The spot rate for the Euro is $1.22 and the one year forward rate is $1.25. The annual rate of interest in France on annual deposits is 3.439%. What is the annual rate of interest on deposits in the United Stat..
Experiencing rapid growth-what is the projected dividend : Perfectly Soft Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 20 percent over the following year, and then 6 percent per year thereafter indefinitely. The required return on this..
Financial manager use beta to manage a portfolio : How can a portfolio/financial manager use beta to manage a portfolio? (Give examples of different type of strategies)
Evaluate management''s role : Based on the information you research related to Lehman Brothers, assess the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor. Make a recommendation for how f..
How much work is done in compressing the balloon : A balloon contains 5.0 L of oxygen gas at 1.0 atm and 20oC. How much work is done in compressing the balloon at constant pressure until its volume drops by 10 % ? Express your answer to two significant figures and include the appropriate units.
Discuss the difference between cash flow and profit : List and describe the four major financial statements.

Reviews

Write a Review

Financial Management Questions & Answers

  Straight-line depreciation and depreciates the asset

Bridgewell Industries is evaluating the option of purchasing a fork-lift truck costing $60,000. If purchased, the truck will replace 4 workers, each with an average annual salary of $15,000. Bridgewell uses straight-line depreciation and depreciates ..

  What profit margin must the firm achieve

Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9 percent a year, a debt-equity ratio of .41, and a dividend payout ratio of 32 percent. The ratio of total assets to sales is constant at 1.34. What profit margin must the firm ..

  New concrete mixer to replace an inefficient older model

Auburn Concrete Inc. is considering the purchase of a new concrete mixer to replace an inefficient older model that is completely worn out. If purchased, the new machine will cost $90,000 and is expected to generate savings of $40,000 per year for fi..

  Does it have after the recap

ABC Printing Inc. raised $120 million in new debt and used this to buy back stock. After the recap, ABC's stock price is $7.5. If ABC had 50 million shares of stock before the recap, how many shares, in millions, does it have after the recap? (Enter ..

  What is the present value of the annuity

A 10-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity..

  What is the implied return on the companys stock

Summers Corp. currently has an EPS of $7.38, and the benchmark PE for the company is 23. Earnings are expected to grow at 9.77 percent per year. Assuming the company pays no dividends, what is the implied return on the company's stock over the next y..

  What is your expected one-year holding-period return

The risk-free rate of return is 6.0%, the expected rate of return on the market portfolio is 18%, and the stock of Xyrong Corporation has a beta coefficient of 1.7. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced w..

  What is their yield to call

Sadik Inc.'s bonds currently sell for $1,270 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?

  To calculate the present value of a business

To calculate the present value of a business, the firm's free cash flows should be discounted at the firm's:

  How much money is currently in the account

Your department at work places $10,000 every year-end into an account earning 5%. The money is used when the corporate office fails to fully finance your profitable projects. The money has not been touched since a deposit was made exactly five years ..

  Describe the variables and their scale of measurement

Describe the variables and their scale of measurement

  Reasonable costs of capital for average-risk-high-risk

Distinguish between beta (i.e market) risk, within-firm ( i.e, corporate) risk, and stand-alone risk for a potential project. Of the three measures, which is theoretically the most relevant, and why? Suppose a firm estimates its overall cost of capit..

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