Maximum price in light of dividend payment logistics

Assignment Help Financial Management

Reference no: EM131518856

Kenzie Cos. is expected to pay a dividend of $2.45 per year indefinitely. The appropriate rate of return on this stock is 15 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Minimum stock price $

What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Maximum stock price $

Reference no: EM131518856

Questions Cloud

Required return exceed foley required return : The risk-free rate of interest is 3.75%. By how much does Beale's required return exceed Foley's required return?

Eliminate the past-due accounts payable : How much bank financing is needed to eliminate the past-due accounts payable?

What is net economic gain or loss on entire option portfolio : What is the net economic gain or loss on the entire option portfolio?

Average amount of accounts payable net of discounts : What is the average amount of accounts payable net of discounts? what would be its average payable balance and what would be cost of this non-free trade credit.

Maximum price in light of dividend payment logistics : Kenzie Cos. is expected to pay a dividend of $2.45 per year indefinitely. What will be the expected maximum price in light of the dividend payment logistics

Calculate the npv of decision to grant credit : Solar Engines manufactures solar engines for tractor-trailers. Calculate the NPV of the decision to grant credit.

How should the dividends be distributed : How should the dividends be distributed?

What is the effective annual rate of using trade credit : What is the effective annual rate of using trade credit? Does Hazelton have any alternative sources of financing available to them?

Budgeted direct labor cost per unit of product : The budgeted direct labor cost per unit of Product WZ would be:

User Account

All Pages