User Account

All Pages

Find return on investment

Assignment Help Finance Basics
Reference no: EM133005048

You buy a stock which has the following features:? price: €500? EPS: €33.3? payout ratio: 25% projected EPS growth 15%

What will EPS have to be equal to in year 3 for you to get a 12% return on your investment?

What will the share be worth then?

Reference no: EM133005048

Questions Cloud

Default risk premium : Tricontinental's bond had a liquidity risk of 1 percent, a maturity risk of 2 percent, a pure rate of return of 1.5 percent, and an inflation premium of 1.35 pe
Find required rate of return : Polycorp has just paid a dividend of $3. The company pays dividends annually. Dividends are expected to grow at 0.11 pa for the next two years and for 0.03 ther
Calculate the price of the debentures : When Polycorp issued its debentures three years ago, they had six years remaining to maturity. Using the following information, calculate the price of the deben
How duration is important to financial managers : 1) Describe how increase of government deficit will impact the supply of bonds, its price and yield.
Find return on investment : You buy a stock which has the following features:? price: €500? EPS: €33.3? payout ratio: 25% projected EPS growth 15%
List a few characteristics of growth firms : How would you infer whether a firm is a value firm or a growth firm based on its book-to-market ratio? List a few characteristics of growth firms.
Calculate the buying and selling prices : Emma buys a bond with a face value of $100, a time to maturity of 5 years, a coupon of 2% pa with semi-annual payments and a yield of 2.4% pa. Three year's late
Increase in nominal interest rates : Which of the following factors would be most likely to lead to an increase in nominal interest rates?
Statements concerning acquisitions : Which of the following statements concerning acquisitions are correct?

Reviews

Write a Review

Finance Basics Questions & Answers

  If cash flows are evenly distributed and the tax rate is 40

blake corporations new project calls for an investment of 10000. it has an estimated life of 10 years. the irr has

  Compute the settlement price of the contract

What is the size of the contract? For any given delivery date, compute the settlement price of the contract. Assuming 15% initial margin, how much money do you need to buy 10 contracts?

  How the investment will help you to carry out your goals

To evaluate which option will benefit the business most, you must evaluate both annuity options by calculating the future value of each option and explain how the investment will help you to carry out your goals

  Transactional and consultative selling in sales management

What is the difference between transactional and consultative selling in Sales Management?

  What is the stock value in given problem

Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100.

  Find the values of the indicated functions

Find the values of the indicated functions.

  What are some things that a union representative responsible

What are some things that a union representative responsible for negotiating wages and benefits should want to see placed in a work agreement?

  What is the expected return for ford

Ford Motor Company's stock is currently selling for $16.23 per share, with a beta of 0.71. If risk-free securities are currently returning 2.7% and the market

  Why is the concept of cash flows

Why do accounting profits and operating cash flows one of the central elements in corporation financial management?

  Accounting literature-corporate financial reporting

In most of accounting literature, corporate financial reporting theories are discussed based on two schools of thought.

  What will the beta of your portfolio be

If you put 30% of your money in BSRM, 40% in KSRM and 30% in ACI, what will the beta of your portfolio be?

  What is the definition of a yield curve

What is the definition of a yield curve and why is it important?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd