User Account

All Pages

Maximum price you should be willing to pay

Assignment Help Finance Basics
Reference no: EM131455639

Consolidated Software doesn't currently pay any dividends but is expected to start doing so in 4 years. That is, Consolidated will go 3 more years without paying any dividends and then is expected to pay its first dividend(of$2.16 per share) in the fourth year. Once the company starts paying dividends, it's expected to continue to do so. The company is expected to have a dividend payout ratio of 43%and to maintain a return on equity of 16%.Based on theDVM, and given a required rate of return of 13%,what is the maximum price you should be willing to pay for this stock today?

Reference no: EM131455639

Questions Cloud

What effect do you feel it will have on the audience : Write a 250-500-word essay that clearly violates an ethical standard. What ethical standard you violated. What effect do you feel it will have on the audience?
How much will each annual payment be : The savings account pays 6.33 percent per year, compounded annually. How much will each annual payment be?
Provide direction for your discussion of servant leadership : For assignment, locate sources that provide a direction for your discussion of servant leadership, ethics, and entrepreneurism as they relate to your efforts.
Compute the expected value for the level of optimism : The Barron's Big Money Poll asked 131 investment managers across the United States about their short tem investment outlook.
Maximum price you should be willing to pay : The company is expected to have a dividend payout ratio of 43%and to maintain a return on equity of 16%.Based on theDVM, and given a required rate of return.
What is your interpretation of this value : he Troubled Asset Relief Program (TARP), passed by the U.S. Congress in October 2008. provided 5700 billion in assistance for the struggling U.S. economy.
Smps investigation and analysis introduction : You are required to investigate and analyse a particular type of SMPS converter. Each student will be given their own unique circuit to analyse
What is the starting salary for the position i want : What is the starting salary for the position I want? What magazines/newspapers/websites should I subscribe to in order to keep up with that career?
Provide a summary of your findings and any insights you have : Provide a summary of your findings and any insights you have gained in the review of the information. Include 4 other journal in addition to citing the article.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current value of bond

Due to recent bad press, a major healthcare company has experienced a market reevaluation. The firm has a $1,000 bond issue outstanding with 15 years to maturity and a coupon rate of 8%, with interest paid semiannually. The required nominal rate o..

  Financial risks-conducting international business

Can you please help with identifying what the financial risks of conducting business internationally is and also, describe the significance of foreign exchange rate risk and how this risk can be mitigated?

  What is the fund required rate of return

If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Round your answer to two decimal places.

  Organization-wide strategic plan communication dissemination

organization-wide strategic plan communication dissemination and recommend communication strategies

  Why is some trade credit called free

Why is some trade credit called free while other credit is called costly? If a firm buys on terms 2/10, net 30, pays at the end of the 30th day and typically shows $300,000 of accounts payable on its balance sheet would the entire $300,000 be free cr..

  How far is the boat from the base of the dam

From a boat on the river below a dam, the angle of elevation to the top of the dam is 21°52'. If the dam is 2376 feet above the level of the river, how far is the boat from the base of the dam (to the nearest foot)?

  How are interest rates determined on hud/ fha loans

Distinguish between the release of liability for a veteran and the restoration of entitlement.

  How many shares would be outstanding after this action

If GFC's managers believe the "ideal" stock price for the firm's shares is $20 per share, what should they do? How many shares would be outstanding after this action? d. Why do you think GFC's managers are considering a stock split?

  Calculate the quantity of output produced

A company has a degree of combined leverage of 1.25. Price per unit is $15 and variable cost per unit is $5. Interest costs is $10,000 and fixed costs are $190,000.

  A bond has the following characteristics what is the bonds

a bond has the following characteristics.time to maturity 12 yearspayment frequency annualpar value 1000bond price

  Find the present value of both annuities

Find the future value of both annuities at the end of year 10, assuming that Marian can earn and find the present value of both annuities, assuming that Marian can earn

  What is a standard family trust

What is an irrevocable living trust?- What is a standard family trust? Give an illustration.-  How do gifts fit into estate planning?

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