How much will you pay for the companys stock today

Assignment Help Financial Management

Reference no: EM131487476

Take Time Corporation will pay a dividend of $3.90 per share next year. The company pledges to increase its dividend by 5 percent per year, indefinitely. If you require a return of 8 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current stock price $____________

Reference no: EM131487476

Questions Cloud

Necessary funds by making equal monthly deposits : It plans to accumulate the necessary funds by making equal monthly deposits into a bank fund that earns 3/4 % per month.

Bank has interest rate swap which involves receiving : A bank has an interest rate swap which involves receiving 4% per year with semi-annual compounding and paying LIBOR every 6 months on $100 million.

Retained earnings in determining the firms cost of capital : What is the appropriate cost for retained earnings in determining the firm’s cost of capital?

What is maximum you should be willing to pay for investment : What is the maximum you should be willing to pay for this investment?

How much will you pay for the companys stock today : Take Time Corporation will pay a dividend of $3.90 per share next year. how much will you pay for the company’s stock today?

Skeleton keeps appreciating at the same average annual rate, : If the skeleton keeps appreciating at the same average annual rate, what would be its value 25 years from now?

Payment at the first reset date than the initial payment : How much larger (in dollars, rounded to the nearest cent) is the payment at the first reset date than the initial payment?

Market impact the companys stock valuation numbers : How might an issue within the overall stock market impact the company’s stock valuation numbers,

Annual compound rate of interest over the five-year period : You put $7,265 into an account and five years later your account balance is $8,654. What was your annual compound rate of interest over the five-year period?

User Account

All Pages