Find company stocks current price

Assignment Help Finance Basics

Reference no: EM1344211

Problem 1
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?

Problem 2
A share of common stock just paid a dividend of $1.00 (D0 = $1.00). If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price?

Problem 3
Assume that a company will pay a dividend of D1 = $1.25 per share on its common stock at the end of the year, and that this dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price (P0)?

Problem 4
Your research leads you to believe a company's common stock will pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock currently sells for $32.50 per share, and your required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate, g?

Problem 5
A dividend of D0 = $1.32 has just been paid to you on a share of common stock. You (and other analysts) expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and each year thereafter. The required return on this low-risk stock is 9.00%. What is your best estimate of the stock's current market value (your belief as to the stock's intrinsic value)?

Problem 6
A company is presently enjoying relatively high growth because of a surge in the demand for its new product. The CFO expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. Based on this information, what is the current price of the common stock?

Purchase Solution
$2.19 Add to Cart

Reference no: EM1344211

Questions Cloud

Essentials of health care finance : Explain major objectives of healthcare financial management including generate income, respond to regulations, facilitate relationship with third-party payers,

Algorithms for finding possible winers-analysing complexity : Create algorithms for finding the possible winers and the Condorcet winner with analysing its complexity.

Find the net demand curve-facing industry a : Find the net demand curve-facing industry A. Conclude A's optimal price also o/p. How much o/p do the other Industries provide in total.

Evaluate what will be the value of scotto common stock : Share because of its maturity as well remain at the current level for the foreseeable future and if the required return is 12% what will be the value of scotto common stock?

Find company stocks current price : A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5 percent, and the expected constant growth rate is g = 6.4 percent.

Illustrate what is your break-even price : If you receive a request for proposal (RFP) on a project for four units, illustrate what is your break-even price.

Illustrate what is the corresponding marginal cost function : illustrate what is the corresponding marginal cost function. at illustrate what o/p is AVC at its minimum.

Evaluate what is the financial break-even level : Evaluate what is the financial break-even level for the project and what is the accounting break-even level for the project?

Incorrect financial projections : What would happen if your financial projections were based on incorrect information? For example if your Booked AR is significantly higher this quarter than the actual AR and cash inflows,

User Account

All Pages