Fast-growing firm recently paid dividend

Assignment Help Financial Management

Reference no: EM131332298

A fast-growing firm recently paid a dividend of $0.85 per share. The dividend is expected to increase at a 15 percent rate for the next three years. Afterwards, a more stable 10 percent growth rate can be assumed.

If an 11 percent discount rate is appropriate for this stock, what is its value today? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock value?

Reference no: EM131332298

Questions Cloud

Calculate the return on assets ratio : Which financial variable must be multiplied by the net profit margin ratio in order to calculate the return on assets ratio? What is the numerical value of the debt ratio if the debt-to-equity ratio is equal to 4?

Record all of the transactions : You are required to set up the company above with the given information, you can make up names and addresses for the suppliers and customers. The first customer ‘'Customer 1'' must be a combination of your group e.g. EliasTaylorOliver Limited.

Create a situation for determining performance evaluations : Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is used both to increase income and to influence performance measures in use.

What rate is the dividend growing : A share of common stock is currently selling for $27.73. The last dividend paid was $1.60 per share. The marketrate of return is 10%. At what rate is the dividend growing?

Fast-growing firm recently paid dividend : A fast-growing firm recently paid a dividend of $0.85 per share. The dividend is expected to increase at a 15 percent rate for the next three years. Afterwards, a more stable 10 percent growth rate can be assumed. If an 11 percent discount rate is ap..

Discuss about the given article on womens culture : Using pictures, you prefer pictures to display women's culture/ how society treated women, more so from a meuseum, or an Art , or an good picture that is traditional, fill the template while connecting it to the story.

Equity in the computation of sports wacc : If the common shares are selling for $26.5 per share, the preferred shares are selling for $14.0 per share, and the bonds are selling for 96.85 percent of par, what would be the weight used for equity in the computation of Sports's WACC?

Share of this stock worth to you if you require : Diamond, Inc recently paid a $1.10 dividend. Future dividends are projected at $1.14, $1.18, $1.22, and $1.25over the next four years, respectively. Beginning five years from now, the dividend is expected to increase by 2%annually. What is one sha..

What is your estimate of the stock current price : A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, ..

User Account

All Pages