User Account

All Pages

Nonconstant dividend growth valuation

Assignment Help Finance Basics
Reference no: EM132531222

Nonconstant Dividend Growth Valuation

A company currently pays a dividend of $1.8 per share (D0 = $1.8). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 9.5%, and the market risk premium is 6.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132531222

Questions Cloud

Calculate cogs and ending inventory for march : Marvin sold 1,800 units in March. He uses the periodic method. Calculate his COGS and ending inventory for March using the methods.
How should Mary account for the collection : During the current year, she unexpectedly collected $12,000 on the debt. How should Mary account for the collection
What is Norms deductible loss : Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2019. What is Norms deductible loss
Compute what is the cost of equity of a company : Compute What is the cost of equity of a company whose shares are trading at 30.2 and which pays a dividend of 5 over five years and 6 after five years?
Nonconstant dividend growth valuation : A company currently pays a dividend of $1.8 per share (D0 = $1.8). It is estimated that the company's dividend will grow at a rate of 22% per year
Determine the exact hardware and software needs : Create 10-12 questions that you will ask the client in order to determine the exact hardware and software needs. Provide a brief rationale for asking.
What effect will this growth have on funds : Gale house has stations inc. expects to increase from $1,700,000 to $1,900,000 next year. Galehouse believes that net assets ( assets-liabilities)
Determine the materials price variance : In the month of April, the company actually produced 4,900 sleeping bags using 24,400. Determine the materials price variance
How influences hr supervisors and team members roles : Determine how the obsoleter employment law and the more recent one vary from each other. Provide examples of how this influences HR supervisors' and team member

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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