Mmk cos normally pays an annual dividend the last such

Reference no: EM13363710

MMK Cos. normally pays an annual dividend. The last such dividend paid was $1.7, all future dividends are expect to grow at a rate of 8 percent per year, and the firm faces a required rate of return on equity of 21 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $26.5 per share that is not expected to affect any other future dividends.

Required:

Explain what should the stock price be?

Reference no: EM13363710

Questions Cloud

1how much life insurance do you need using the msn money : 1.how much life insurance do you need? using the msn money life insurance calculator enter the information and post

Consider that sales for the entire year were 100000 and : consider that sales for the entire year were 100000 and cost of goods sold was 80 of sales. the inventory conversion

Tarek framborgia is considering the purchase of a : tarek framborgia is considering the purchase of a disability policy. he is currently 35 years old and earns 50000 per

Step into the shoes of a financial analyst discuss which : step into the shoes of a financial analyst. discuss which steps of the capital budgeting process you would find the

Mmk cos normally pays an annual dividend the last such : mmk cos. normally pays an annual dividend. the last such dividend paid was 1.7 all future dividends are expect to grow

Lil john industries equity is currently selling for 46 per : lil john industries equity is currently selling for 46 per share and there are 2.1 million shares outstanding. the firm

A mining company is considering a new project because the : a mining company is considering a new project. because the mine has received a permit the project would be legal but it

Ivans inc paid 484 in dividends and 587 in interest this : ivans inc. paid 484 in dividends and 587 in interest this past year. common stock increased by 197 and retained

As the cfo of a company what indicators would you look at : as the cfo of a company what indicators would you look at to assess whether your firms long-term assets were impaired?

User Account

All Pages