Financial analysts forecast limited brands growth rate

Assignment Help Financial Management
Reference no: EM131551289

Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 12.5 percent. LTD’s recent dividend was $0.95. What is the value of Limited Brands stock when the required return is 14.5 percent?

Reference no: EM131551289

Questions Cloud

Annual cost of financing for the franc-denominated bonds : what is the annual cost of financing for the franc-denominated bonds? Which type of bond should Sambuka issue? how do you find the initial cash flows?
What is the expected value of these outcomes : The probabilities of their outcomes are 15%, 60%, and 25% respectively. What is the expected value of these outcomes?
What were the financial incentives for the bank to do this : What were the financial incentives for the bank to do this? What were the regulatory reasons for this behavior?
Current rate be on three-year treasury securities : If the liquidity premium theory is correct, what should the current rate be on 3-year Treasury securities?
Financial analysts forecast limited brands growth rate : Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 12.5 percent. LTD’s recent dividend was $0.95.
Compute the payback statistic for project : Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years.
Your money in the old portfolio : What will be the new portfolio beta if you keep 94 percent of your money in the old portfolio and 6 percent in a stock with a beta of 0.32?
Likelihood of crises in various emerging market currencies : Monique Kwan now turns her attention to the likelihood of crises in various emerging market currencies.
What is the average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $15,300, and the average collection period is 43 days. What is the average accounts receivable figure?

Reviews

Write a Review

Financial Management Questions & Answers

  Risk and return and coefficient of variation based

Risk and Return, Coefficient of Variation Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship. Std Dev. Exp. Return Company A 7.4 13.2 Company B 11.6 18.9

  Higher plow back ratio means ratio

All else the same, a higher plow back ratio means a(n) _________P/E ratio. You wish to earn a return of 10% on each of two stocks,A and B.Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividen..

  What is the npv of this investment

If the appropriate discount rate is 15 percent, what is the NPV of this investment?

  Furthering plans for expansion of manufacturing facilites

Felicia & Fred’s Firm have now considered furthering their plans for expansion of manufacturing facilities. Their first option is by customizing and refurbishing the large former mill building located in New England near the main production facility...

  What was her approximate real rate of return on investment

Christina purchased 200 shares of stock at a price of $62.30 a share and sold them for $70.25 a share. She also received $148 in dividends. If the inflation rate was 4.2 percent, What was her approximate real rate of return on this investment? Over a..

  Your investment is now worth

Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return in the second year was +50 percent. Your investment is now worth $1,000.

  Use the dividend valuation model price on this stock

Let’s assume that you’re thinking about buying stock in West Coast Electronics. So far in your analysis, you’ve uncovered the following information: The stock pays annual dividends of $5.00 a share indefinitely. It trades at a P/E of 10 times earning..

  Oftentimes split the interest and principal payments

Investment banks will oftentimes "split" the interest and principal payments on US government bonds into two parts and sell each part separately. Consider a vanilla government bond with 30 years to maturity, a coupon rate of 10 percent, a face value ..

  Outstanding with various times-to-maturity and coupon rates

Microsoft currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on June 1, 2039, approximately 25 years from today. The bond is currently selling for $1,153.06, based on a face ..

  The constant dividend growth rate and what the stock price

We would expect that, all else being equal, investors would pay less for a stock that they view as having become more risky. Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends will grow at a 14% rate. T..

  What is standard deviation of this portfolio

A portfolio contains 25% in Panera Bread and the remainder in Valero.  Panera Bread and Valero had the following realized returns: What is the standard deviation of this portfolio?

  Compute the effective interest rate for this loan

You are planning to purchase a new house or condominium to use as your primary residence. This assignment will analyze some of the financial aspects of doing so. Compute the effective interest rate for this loan. Compute the monthly payment amount of..

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