How much should the share worth

Assignment Help Financial Accounting
Reference no: EM132763842

Problem 1: Company B's share is trading at $43 per share. It has paid out a dividend of $3 per share recently and the expected dividend growth rate is 2% every year. Investors expect a minimum of 10% return every year from the company. According to the constant growth dividend discount model, how much should the share worth?

Option 1: 43

Option 2: 30

Option 3: 38.25

Option 4: 37.5

Reference no: EM132763842

Questions Cloud

Expensive equipment and sophisticated technology : Propose another option the company could take in order to fulfill the project.
Compute the amount of operating income earned : Budgeted selling and administrative costs (all fixed) $45,000. Compute the amount of operating income earned by Merlene for the year
Find how many times have seen in the news examples of ceo : Find How many times have you seen in the news examples of CEO excesses or outlandish spending on events or things that definitely do not help the overall goal
Conduct a search for an article that addresses suicide risk : Using the Walden Library, conduct a search for an article that addresses suicide risk, evaluation of suicide potential, and/or involuntary hospitalization.
How much should the share worth : A minimum of 10% return every year from the company. According to the constant growth dividend discount model, how much should the share worth?
Compute the inventory value of the new product : The product incurred variable manufacturing costs of $5,000,000, Under the variable costing concept, compute the inventory value of the new product
How a forensic psychology professional might use findings : Post a brief summary of the study you selected, being sure to include the key findings and any other important "takeaways" of the study.
Describe advantages of governmental involvement : Describe two advantages and two Disadvantages of governmental involvement. What changes would you make to Improve government's role?
What is the difference of low and remote inclusion : What is the difference of low and remote inclusion? What methods can me employed to prevent a security breach?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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