Pays current dividend

Assignment Help Financial Management
Reference no: EM131067701

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 24% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value of Deployment Specialists stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic value $

Reference no: EM131067701

Questions Cloud

Stephenson real estate recapitalization : The DRK Corporation recently developed a dividend reinvestment plan (DRIP). The plan allows investors to reinvest cash dividends automatically in DRK in exchange for new shares of stock. Over time, investors in DRK will be able to build their hold..
Complicated working relationships : Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?
State the two postulates of the special theory of relativity : State the two postulates of the special theory of relativity. Two photons are approaching each other in free space, what is the relative speed of one with respect to other? What are de-Broglie's matter waves. What is the difference between phase velo..
What disadvantages are there to outsourcing the activity : Make or Buy Decisions Pick an article (or more) from the literature that tells about a particular company’s outsourcing decision. There are many such articles. Explain why the company decided to outsource the activity. What disadvantages are there to..
Pays current dividend : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 24% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value of Deployment Specialists sto..
What effects do competition between firms : What effects do competition between firms for a consumers and competition between consumers to get their hands on a given good have on the adjustment
Bond prices and interest rates : Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?
Examples of similar press releases : You can see examples of similar press releases at the website of the union United Voice: http://www.unitedvoice.org.au/industries/hospitality.
Bondholders to receive payments in the event the firm : Indicate whether each of the following actions will increase or decrease a bond`s yield to maturity: a. The bond`s price increases. b. The bond is downgraded by the rating agencies. c. A change in the bankruptcy code makes it more difficult for bo..

Reviews

Write a Review

Financial Management Questions & Answers

  What will be effect on cash flows of this sale

Suppose you sell a fixed asset for $50,000 when its book value is $60,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

  What rate is the lender more likely to quote on the loan

You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly payments of $804.62 over the next 30 years. What monthly interest rate are you paying on the loan? What is the APR? What is the effective annual rate on that loa..

  True regarding investment banks

Which of the following is true regarding Investment Banks? When Glass-Steagal was repealed in 1999, commercial banks and Investment banks had to be separate entities.

  What was the corporations market-to-book ratio

Last Year, a corporation had a book value of equity of $350 million of USDs, 1 million shares outstanding, and a market price of $40 per share. The corporation also had cash of $3 million of USDs, and total debt of $360 million USDs. What was the cor..

  Investment project provides cash inflows

An investment project provides cash inflows of $630 per year for eight years. What is the project payback period if the initial cost is $1,575? Payback period years what is the project payback period if the initial cost is $3,175?

  The expected price of the stock at the end of year

Unlimited Corp. just paid a $.50 dividend per share and plans to double the dividend each of the next 2 years, and then dividends will grow 5% for the foreseeable future. If r is 10%, what is the expected price of the stock at the end of this year?

  Using semi-annual compounding

Using semi-annual compounding, what is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent? Assume that interest payments are paid semi-annually and that par value is $1000.

  Approaching the same events from two different angles

Find two consecutive scenes in Shakespeare's Henry V that seem to “speak” to each other. This can be done through the two scenes paralleling or contrasting one another, or approaching the same events from two different angles.

  Salary differential for completing the certification program

Natasha is 30 years old and currently employed as a Tier 2 field service representative for a telephony corporation and earns $38,000 a year that she anticipates will grow at 3% per year. What is the net present value of undertaking the certification..

  Retired before receiving the remaining payments

Ogden Mear did an excellent job saving for retirement. He was able to save $1,000,000 in an account that pays 5 percent per year. His plan was to eventually withdraw all his money by paying himself in equal installments every six months for the next ..

  Adjusted for inflation

When Renee was living, she and Luke each bought a life insurance policy at the birth of their first child. They used the multiple-of-earnings approach to determine how much life insurance to purchase. what would the present value of Renee's life insu..

  The firms overall cost of capital was used a hurdle rate

An all-equity firm is considering the following projects: Which projects have a higher expected return than the firm's 11% cost of capital? Which projects should be accepted? Which projects would be incorrectly accepted or rejected if the firm's over..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd