Find the price of the stock now

Reference no: EM13260656

Arakawa Corporation is currently paying no dividend ; however, it is expected to pay a $1.00 dividend after two years, $1.00 after three years, $1.10 after four years, and then $1.20 a year uniformly after the fifth and subsequent years. If the stockholders of Arakawa require 12% return on their investment, find the price of the stock now. What is the price after 12 years?

Reference no: EM13260656

Questions Cloud

What will be standard deviation of the resulting portfolio : The stock and bond portfolios have a correlation of .55. What will be the standard deviation of the resulting portfolio?

Explain molecules are mobile in a gas and some reactions : Molecules are mobile in a gas and some reactions can be run in the gas phase. Give several reasons solutions are preferable for synthetic reactions.

Calculate the regular payback period : The Capital Corporation is planning to spend $1,000,000 on expansion. It's WACC is estimated at 13%. Operating cash flows for years 1-4 are estimated at $300,000, followed by $350,000 for the next 4 years.

Calculate the impulse you imparted to the wagon : Your little sister (mass 25.0 kg) is sitting in her little red wagon (mass 8.65kg ) at rest. You begin pulling her forward, Calculate the impulse you imparted to the wagon and its passenger

Find the price of the stock now : If the stockholders of Arakawa require 12% return on their investment, find the price of the stock now. What is the price after 12 years?

The al(oh)3 reacts with hcl(aq) the products are a chloride : The resulting solution required 13.73 mL of 0.176 mol L-1 NaOH(aq) to neutralize the excess, unreacted HCl. What was the percentage by mass of Mg(OH)2 in the original sample [Hint: When Mg(OH)2 or Al(OH)3 reacts with HCl(aq), the products are a ch..

What is the expected return on the complete portfolio : You have $500,000 available to invest. The risk-free rate, as well as your borrowing rate, is 8%. The return on the risky portfolio is 16%. The standard deviation on the risky portfolio is 50%.

Find the direction of the velocity of the red puck : A blue puck with a mass of 4.30×10?2kg , sliding with a speed of 0.190m/s on a frictionless, horizontal air table, Find the direction of the velocity of the red puck after the collision

Evaluate the ph of a buffer solution made by mixing : Calculate the pH of a buffer solution made by mixing 34 ml of a 0.11 M potassium acetate solution with 63 ml of a 0.10M acetic acid solution. Give the pH to two decimal places.

User Account

All Pages