Find the current stock price

Assignment Help Finance Basics
Reference no: EM133112602

Suppose now Mr. A will pay dividend of $0.80 at the end of each of the next 12 period. Thereafter, the dividend will grow at a rate of 1 percent, forever. Suppose that the rate of return is 10%. Find the current stock price. Round your final answer to 2 decimal places.

Reference no: EM133112602

Questions Cloud

Find out the spot rate : You enter a long position in a #2 future contract with the size of €125,000 today. The futures expire in 90 days. The interest rates are i$=5% and i€=10.4%. The
Proportions of financing : A firm has estimated its weighted average cost of capital to be 9% based on the fact that its after cost of debt financing is 7% and its cost of equity is 12%Wh
Presenting to group of technology professionals : You are a CEO of a tech company in California and you will be presenting to a group of technology professionals in Italy;
Calculate santa wacc : Santa's Workshop Inc. shares are currently trading at $8.95 each. The market yield on Santa's debt is 5% and the firm's beta is 1.40. The risk-free rate is 3.25
Find the current stock price : Suppose now Mr. A will pay dividend of $0.80 at the end of each of the next 12 period. Thereafter, the dividend will grow at a rate of 1 percent, forever.
Explain whether the business idea needs to be modified : Explain whether the business idea needs to be modified, changed significantly, or abandoned based on your feasibility analysis.
What is the break-even probability from granting credit : What is the break-even probability from granting credit under these conditions?
Discuss why simulation analysis can provide benefit : 1. Briefly explain how shifting the firm's capital structure weights might directly tie to the "goal of the firm."
What are the global challenges today : What are the global challenges today? How would you order the following tensions/conflicts n order of threat to international peace and security and why

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the portfolio beta

Kate has $100,000 invested in a two-stock portfolio. Thirty thousand dollars is invested in Potts Manufacturing and the remainder is invested in Stohs

  Effect on the total market value of jpix equity

What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity?

  Company required rate of return on equity

Suppose you have a firm with the following information (ignore financial distress costs):

  Computation of company stock price

Firm x has net income of $2,000,000 and it has $1,000,000 share of common stock outstanding. The Firm's stock currently trades at $32 per share.

  What is the implied annual interest rate

The June Treasury bond futures contract has a quoted price of 102'12. What is the implied annual interest rate?

  Rutledge inc has invested 100000 in a project that will

rutledge inc. has invested 100000 in a project that will produce cash flows of 45000 37000 and 42950 over the next

  Construct a scatterplot

Construct a scatterplot. Does scoring more points appear to be associated with a higher winning percentage?

  Local co has sales of 10 million and cost of sales of 6

local co. has sales of 10 million and cost of sales of 6 million. its selling general and administrative expenses are

  Different costs of capital for different operating divisions

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC).

  What will the ending retained earnings account be

Projected income is $150,000 and 40% of this amount will be paid out immediately as dividends. What will the ending retained earnings account be?

  Compare two different nations with respect to gnp

Compare two different nations with respect to GNP, fertility rate, and life expectancy.

  Compute the present value of stock

The Ectoplasto Drug Corporation's common stock is considered highly speculative. Security analysts think that over next year 4 possible outcomes are possible for corporation's research program.

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