User Account

All Pages

Find the price per share of verizon stock

Assignment Help Accounting Basics
Reference no: EM133182668

Question - Verizon paid a dividend of $3 per share yesterday. The company announced that they plan to increase their dividend by $1 per share for each of the next three years ($4 a year from now, $5 two years from now, and $6 three years from now). After that, they plan to keep their dividend at $6 per share forever. The variance of Verizon's stock is .49, the variance of the market is .0625, and the correlation between Verizon's stock and the market is 0.4. The risk-free rate is 3.0% and the market-risk premium is 5.7%. Verizon has 100 million shares of stock outstanding and $50 million of debt. The YTM for its debt is 8.0%. Use the dividend discount model to find the price per share of Verizon's stock.

Reference no: EM133182668

Questions Cloud

Senior cloud architect at Google : You are hired as a Senior Cloud Architect at Google. Google stated they are having issues with less visibility with more complexity.
What is the contribution margin for the special order : Franco has the capacity to produce 9,000 chairs per year and currently is producing 6,000. What is the contribution margin for the special order
Quantitative and one qualitative technique : Identify one quantitative and one qualitative technique. How do the techniques complement each other?
Corporate it transformation at barco : 1. Should reducing IT spending be one of the keys to the business case (table 2 in the case)? Why or why not?
Find the price per share of verizon stock : Verizon has 100 million shares of stock outstanding and $50 million of debt. The YTM for its debt is 8.0%. Find the price per share of Verizon stock
Successfully implemented enterprise system : Using the Web, conduct research to identify three organizations that recently and successfully implemented an enterprise system.
How can sustainability reporting assist businesses succeed : Question 1: Are effective climate change responses and sustainability more generally compatible with the operation of profitable commercial enterprises?
What are the blocking factors to achieve diversity : What are the blocking factors to achieve diversity and inclusion and how to overcome them? (approximate 150w)
What global growth strategy has transsion relied on over : What global growth strategy has Transsion relied on over the years and how has it evolved? What market expansion option should Transsion choose and why: i) prod

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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