Market price of this stock if the market rate of return

Assignment Help Financial Management
Reference no: EM131525317

LK Airlines paid an annual dividend of $1.06 a share last month. The company is planning on paying $1.60, $1.95, and $2.00 a share over the next 3 years, respectively. After that, the dividend will be constant at $1.60 per share per year. What is the market price of this stock if the market rate of return is 10.5 percent?

Reference no: EM131525317

Questions Cloud

Defien optimal distribution policy : Define each of the following terms: Dividend irrelevance theory; bird-in-the-hand theory; tax preference theory.
Eliminate these types of discrimination : Can we eliminate these types of discrimination from the workplace? Be sure to cite statistics that support your findings.
How much if any will each insurer pay : If a court awards a liability judgment of $100,000 against Donna, how much, if any, will each insurer pay?
Discuss the aggregate payout ratio : How would each of the following changes tend to affect aggregate (that is, the average for all corporations) payout ratios, other things held constant?
Market price of this stock if the market rate of return : LK Airlines paid an annual dividend of $1.06 a share last month. What is the market price of this stock if the market rate of return is 10.5 percent?
Create estimate of your future annual earning in spreadsheet : Create estimate of your future annual earnings in spreadsheet, reporting following assumptions. Show these assumptions and their justifications on spreadsheet.
What was your total real rate of return on this investment : Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? what was your total real rate of return on investment?
Find difference between a stock dividend and a stock split : What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100 percent stock dividend.
Disadvantages of using traditional predictors : Determine three (3) advantages and three (3) disadvantages of using traditional predictors (e.g., resume-bio presentations, interviews, reference checks, etc.)

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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