Phoenix industries has pulled off a miraculous recovery

Assignment Help Corporate Finance

Reference no: EM13381854

Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis.

Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $3 per share) dividend growth is expected to settle down to a more moderate long-term growth rate of 6%. If the firm's investors expect to earn a return of 14% on this stock, what must be its price?

Reference no: EM13381854

Questions Cloud

Part 1visit southwest airlines investor relationsreview the : part 1visit southwest airlines investor relations.review the information the company has provided including the company

Omega corporation has 111 million shares outstanding now : omega corporation has 11.1 million shares outstanding now trading at 54 per share. the firm has estimated the expected

Waltham inc a publicly traded firm is considering the : waltham inc. a publicly traded firm is considering the acquisition of a private company artforever.com which

Ampex common stock has a beta of 14 if the risk-free rate : ampex common stock has a beta of 1.4. if the risk-free rate is 8 percent the expected market return is 16 percent and

Phoenix industries has pulled off a miraculous recovery : phoenix industries has pulled off a miraculous recovery. four years ago it was near bankruptcy. today it announced a 1

1 pollos inc wants to raise 2 million by issuing ten-year : 1. pollos inc. wants to raise 2 million by issuing ten-year zero coupon bonds with a face value of 1000. its

The fridge-air companys preferred stock pays a dividend of : the fridge-air companys preferred stock pays a dividend of 4.50 per share annually. if the required rate of return on

Explain cost of capital in terms of the financing costs to : explain cost of capital in terms of the financing costs to the corporations. include a detailed explanation of the

Problem 1a in the game from the previous problem set old : problem 1a in the game from the previous problem set old lady crossing the street identify all pure strategy nash

User Account

All Pages