User Account

All Pages

How much should you pay for the stock

Assignment Help Financial Management
Reference no: EM132369014

Question :

Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?

Dividend $ 1.35

Rate of Return 0.095

Reference no: EM132369014

Questions Cloud

How much will the total cost increase for february : Fixed cost total $84000. If they increase occupancy from 80% to 90%. How much will the total cost increase for February.
Price elasticity of demand for company : As an example, you can consider that the report states that the price elasticity of demand for your company's product last year has been
What would be the balance of the materials inventory account : What would the journal entries to ledger accounts in T-account form look like. What would be the balance of the materials inventory account at the end.
What is the effect of state laws forcing individuals : What is the effect of state laws forcing individuals to purchase auto liability insurance?
How much should you pay for the stock : How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment? Company X is paying an annual dividend.
How to know engel curves is straight or not : In the first question, how to know engel curves is straight or not?
What is the trilemma : What is the trilemma? How does it relate to the gold standard? What happens if a country's currency is pegged too high? Too low?
What were the human costs of the war : How might political economy help explain World War I? What were the human costs of the war? The economic costs?
Data analytics for intrusion detection : Data analytics for intrusion detection - Cyber Security and Analytics - Perform intrusion detection using the available data analytic techniques using WEKA

Reviews

Write a Review

Financial Management Questions & Answers

  Firm has debt-equity ratio-what is the total debt ratio

A firm has a debt-equity ratio of .35. What is the total debt ratio? How Research & Development can help Caterpillar Inc. gain tax credit? Consider a project with the following cash flows -100, 230 and -134 at time 0, 1 and 2, respectively. Obtain th..

  Good financial health and was able to get coupon rate

When AFA issued the bonds it was in good financial health and was able to get a coupon rate of 6.6%.

  The horizontal headings in the statement

The horizontal headings in the P&L statement show:

  Find the cross rate between GBP and JPY

On 11/8/11, the USD-JPY exchange rate was ¥77.746 per $1. Also on the same day, the USD-GPB exchange rate was $1.6086 per £1. Find the cross rate between GBP and JPY.

  Wacc and optimal capital budget

WACC AND OPTIMAL CAPITAL BUDGET Adamson Corporation is considering four average-risk projects with the following costs and rates of return:

  Explain zero profit interntemporal arbitrage

What is the correct way to annualize an interest rate in financial decisions? Define and explain zero profit interntemporal arbitrage

  What is current price per share

Huskie Motors just paid an annual dividend of $1.00 per share. Management has promised shareholders to increase dividends at a constant rate of 5%. If the required return is 12%, what is the current price per share.

  What is your estimate of the company cost of equity

Stock in CDB Industries has a beta of .95. The market risk premium is 7 percent, and T-bills are currently yielding 4 percent. CDB’s most recent dividend was $2.40 per share, and dividends are expected to grow at an annual rate of 5 percent indefinit..

  Managerial theories are based on historical approaches

Many of the approaches to management and/or managerial theories are based on historical approaches to management and/or historical managerial theories.

  What was the previous day asked price in dollars

What is its coupon rate? What was the previous day’s asked price in dollars?

  Landscape business offer expected return

However, you feel that other investments of equal risk to your frined's landscape business offer an expected return of 10% for the year. What should you do?

  Compute the capital gains yield and current yield

If the yield on similar risk investments is 11 percent, what is the current market value (price) of the bond?

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