Find the expected rate of return for the stock

Reference no: EM131928777

Question: XYZ common stock is expected to pay a dividend of $1.18 next year, and that dividend grows at a constant rate of 9.9 percent. If the current price of XYZ common stock is $49.28, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model? (Show your answer in DECIMAL FORM to three decimals, e.g., 12.3% would be entered as 0.123).

Reference no: EM131928777

Questions Cloud

What is the current price : A 7% coupon rate bond makes annual interest rate payments. Par value is $1,000. The bond matures in 10 years. The required rate of return is 5%.

Describe the four strategies that firms have available : Describe the four strategies that firms have available when they enter international markets. What are the relative advantages and disadvantages of each?

Provide a web page with a simple calculator : Provide a web page with a simple calculator. The web page will have two text boxes (with labels) for data entry, radio list box to select.

Access a non-existing web page : Modify the Web.config so that the user is directed to Err404.aspx web page if they try to access a non-existing web page.

Find the expected rate of return for the stock : XYZ common stock is expected to pay a dividend of $1.18 next year, and that dividend grows at a constant rate of 9.9 percent.

Describe the overview of project management scalability : Why should this supplier to Ford Motor Company implement Balanced Scorecards on all of their projects?

Create uml use case diagram : Question 1) Create UML Use Case diagram from the following requirements:

How many bonds are in the entire group : What is the total face value of a group of municipal bonds that have a bond interest of 4% per year if the entire group pays quarterly interest payments.

What are the maximum profit and loss per share : Plot the Short call + Short put strategy with using call option in problem 4 and put option in problem 5. What are the maximum profit and loss per share.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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

User Account

All Pages