User Account

All Pages

If you can earn 13 on similar-risk investments what is the

Assignment Help Finance Basics
Reference no: EM13571903

Elk County Telephone has paid the dividends shown in the following table over the past 6 years.

Year Dividend per share

2012 .....................$2.87

2011 ..................... 2.76

2010 ..................... 2.60

2009 ..................... 2.46

2008 ..................... 2.37

2007 ..................... 2.25

The firm's dividend per share next year is expected to be $3.02.

a. If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share?

b. If you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share?

c. Compare and contrast your findings in parts a and b, and discuss the impact of changing risk on share value.

Reference no: EM13571903

Questions Cloud

Read the topic carefully write a three to four 3-4 page : the project paper focuses on a suggested topic related to art architecture history music or literature. the project
An offer to manage the business for 10 years that would : 1. the board of samad corp. a family-owned corporation wishes to sell the business and is considering three offersget
I you deposit 45000 in a savings account that pays 10 : if you deposit 45000 in a savings account that pays 10 interest compounded monthly for 5 years. what is the future
Describe the importance of process mapping in a supply : 1.describe how you would identify bottlenecks in your value stream? how would you ensure sustained flow through those
If you can earn 13 on similar-risk investments what is the : elk county telephone has paid the dividends shown in the following table over the past 6 years.year dividend per
The nelson company has 1690000 in current assets and 650000 : the nelson company has 1690000 in current assets and 650000 in current liabilities. its initial inventory level is
It is always a good idea to verify amounts in the general : it is always a good idea to verify amounts in the general ledger just to be sure there are no problems or stupid
On january 2 2014 johnson inc sold used equipment to : on january 2 2014 johnson inc. sold used equipment to rencher company for 3000 down and three annual payments of 9500
The companys cost of borrowing is 9 and its weighted costof : the companys cost of borrowing is 9 and its weighted costof capital is 14. calculate the modified internal rate of

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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