New firm in rapidly growing industry

Assignment Help Financial Management

Reference no: EM131055555

The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 21.2 percent a year for the next 3 years and then decreasing the growth rate to 4 percent per year. The company just paid its annual dividend in the amount of $2.38 per share. What is the current value of one share of this stock if the required rate of return is 10.7 percent?

Reference no: EM131055555

Questions Cloud

Invests the proceeds in marketable securities : If a firm issues $10 million in notes payable and invests the proceeds in marketable securities, all of the following balance sheet categories will increase, except:

Different variations of the training process : There are different variations of the training process or training steps presented within different contexts and based on different schools of thought, however, all follow a similar path from start to finish. Chapter 1 of your text presents nine s..

Write a research report on the current financial performance : Write a research report on the current financial performance, future prospectsand international trade risk of Best Buy (Canadian company) after performing various financial analyses (in Excel). Your report should be typed in MSWord and consist of th..

Depreciated straight line to zero : A project costs $32,000, will be depreciated straight line to zero over its 3 year life, and will require a net working capital investment of $9,000 up front. The project generates OCF of $24,000 every year. The fixed assets sold for $6,000 at the en..

New firm in rapidly growing industry : The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 21.2 percent a year for the next 3 years and then decreasing the growth rate to 4 percent per year. The company just paid its an..

Creative benefits to employees : What are the advantages and disadvantages of offering unique and creative benefits to employees?

Write eight pages journal about the chapter you choose : The assignment is to choose any chapter between 12-21 from the book "world together and world apart Vol2" and write 8 pages journal about the chapter you choose.

Just-in-time inventory system is designed to reduce : The just-in-time inventory system is designed to reduce the inventory period. In essence, companies pay their suppliers to carry the inventory for them. Reducing the inventory period reduces the operating cycle and thus the cash cycle. This reduces t..

Key charecteristics of coaching : What does coaching mean? If used in training and development what are the key charecteristics of coaching?

User Account

All Pages