User Account

All Pages

Investor required rate of return-stock is currently trading

Assignment Help Financial Management
Reference no: EM13765436

A stock current dividend is $1.00 and its expected dividend is $1.10 next year. If the investor required rate of return is 15% and the stock is currently trading at $20.00. What is the implied expected price in one year?

A. 22.00

B. 21.90

 

C. 23.00

Reference no: EM13765436

Questions Cloud

How was hamlet a tragic hero : How was Hamlet a tragic hero?
What is conundrums expected current share price : Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 12%..
Downsizing and the expansion the firm oversees : The focus on core competencies seems to mandate both a downsizing and the expansion the firm oversees. Is this a contradiction? (Hint: Discuss the concept of core competencies and then show how spreading a business across boarders expands the gains f..
What methodologies are used in study published by nguyen : What methodologies are used in the study published by LeBlanc and Nguyen (1999)? List them. Identify the procedure that was followed for sample selection as well as the sample size.
Investor required rate of return-stock is currently trading : A stock current dividend is $1.00 and its expected dividend is $1.10 next year. If the investor required rate of return is 15% and the stock is currently trading at $20.00. What is the implied expected price in one year?
Why it is necessary to choose appropriate data types : Why it is necessary to choose appropriate data types for each data column. How must a database designer balance the time to complete data modeling steps with the benefits the data modeling process offers in creating
Determine the optimal number of currencies : How would you go about determine the optimal number of currencies in the world? In a region like Europe? Within a country like the United States? Describe your approach to the issue, and use your analytical framework to compare the appropriateness of..
Withholdings and employer matching : The employees of the Chop House earned gross salaries of $45,000 during January. The company complied with the law regarding employees' withholdings and employer matching.
What is the net present value of this investment : An orcharder spends $100,000 to planet pomegranate bushes. It will take four years for the bushes to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth $9,500 per year. If the discount rate is 9%,..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the internal growth rate

A firm has sales of $173,000, total assets of 160,000, net income of $15,000, and dividends paid of $3,000. What is the internal growth rate?

  Value of the stock according to the dividend discount model

Stock A has an expected dividend of $1.30 payable as of two years from now (i.e. it is not expected to pay any dividends over the first two years). After that, dividends are expected to grow at an annual rate of 1% forever. If the discount rate is 5%..

  Discount rate should you use to evaluate warehouse project

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project?

  What is the companys stock price per share today

ABC Tec Inc. is expected to produce $100 million FCF (free cash flow) at the end of year 3, $150 million FCF at the end of year 4, $180 million at the end of year 5 and thereafter the FCF is expected to grow at a constant rate of 4%. No FCFs ($0) are..

  There are two questions on financial planningq why do you

there are two questions on financial planning.q why do you think most long term financial planning begins with the

  Provide a description of the three forms of the efficient

provide a description of the three forms of the efficient market hypothesis using the picture below.nbsp do you think

  Incremental cash flowsnbsp1 it is 1995 and food for less

incremental cash flowsnbsp1. it is 1995 and food for less ffl a grocery store is considering offering one hour photo

  Investment opportunity-What is the NPV of the project

Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.8 million in Year 1, €2.6 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is $1.36/€..

  Increasing steadily due to increasing demand

Due to increasing value of the Yuan the Chinese electronics manufacturers have been suffering losses. At the same time the cost of a rare-earth mineral used in production of their goods has been increasing steadily due to increasing demand. You have ..

  Cash flow-compute its cash flow

Cash flow. Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in a 40 percent tax bracket. Compute its cash flow

  Find the break point in the marginal cost of capital

Find the break point in the Marginal Cost of Capital and determine the cost of each capital structure component.

  What is the present value of a security

What is the present value of a security that will pay $19,000 in 20 years if securities of equal risk pay 12% annually? Round your answer to the nearest cent.

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