Price per share of nogrowth stock

Assignment Help Finance Basics
Reference no: EM131388158

NoGrowth Corporation currently pays a dividend of $0.55 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 12.4%? Please show work.

Reference no: EM131388158

Questions Cloud

Volunteer activities and extracurricular sport : One of your classmates, Madison, is a hardworking student, is serious about her classes, and is conscientious about her grades. Madison is also involved, however, in volunteer activities and an extracurricular sport. If Madison's goal is to be involv..
Explain is the instrument negotiable : Thereupon Marco made and delivered his note for $500 payable to Pablo or order ‘‘ten days after my marriage.'' Shortly thereafter Marco was married. Is the instrument negotiable? Explain.
Create a one page outline in which you select topics : Create a one page outline in which you select topics and subtopics around your recommendations to improve the employee's involvement.
About an organization like the european union : In considering the international realm, let’s consider the concept of economic treaties. Specifically, let's think about an organization like the European Union (EU). Why was it formed? In addition, what are some of the objectives of the nations that..
Price per share of nogrowth stock : NoGrowth Corporation currently pays a dividend of $0.55 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 12.4%? Please show work.
Average variable cost-average fixed cost and marginal cost : Assume that your answers to part a) represent the cost curves for a wine making firm. Illustrate and explain how each of the following affects the firm’s average total cost, average variable cost, average fixed cost and marginal cost.
Determine the amount of additional financing required : Hepler Company's sales for 1999 are forecasted to be $34 million, earnings after taxes are expected to be 5 percent of sales and dividends of $800,000 are expected to be paid. Assuming that the ratios"assets to sales" and "current liabilities to s..
Growth factor for the full 6-year period : If you invest $5000 at 7% compound interest, by what overall percentage will it grow over the course of 6 years? What is the growth factor for the full 6-year period?
Determining the bond current yield : Penny Pincher Discount Grocers has issued a bond with a coupon rate of 11%. It recently closed at a price of $1023.75. What is the bond's current yield?

Reviews

Write a Review

Finance Basics Questions & Answers

  Question regarding the financial management tools

Assume that you own a Deluxe Spa Salon business that is so successful, you need to open a second location. How will you determine whether or not this is a good idea?  In other words, what financial management tools do you have at you..

  Wilbur who has had difficulty making up his mind for most

wilbur who has had difficulty making up his mind for most of his 29 years was sitting around on sunday with some of his

  Compute the duration for bond c and rank the bonds on the

compute the duration for bond c and rank the bonds on the basis of their price volatility. the current rate of interest

  George opportunity cost of producing

What is George's opportunity cost of producing one loaf of bread? What is George's opportunity cost of producing one meatloaf? What is Martha's opportunity cost of producing one loaf of bread?

  Indicate if the term represents a sweetener

Security "sweeteners." For each of the terms below, indicate if the term represents a sweetener for the issuer or buyer of a security. Provide a short explanation.

  Steps in the operating budget process

Discuss the most important steps in the operating budget process. Why are these more important than the other steps? Which is better the top-down budgeting process or the bottom-up methods? Why?

  Nell corp is expanding fast and currently needs to retain

nell corp is expanding fast and currently needs to retain all of earnings hence it does not pay dividends. however

  25 percent in stock s and 20 percent in stock t the betas

you own a stock portfolio invested 35 percent in stock q 20 percent in stock r 25 percent in stock s and 20 percent in

  As people get closer to retirement their investment goals

as people get closer to retirement their investment goals often change. assume you are not 45 and have accumulated

  Interest rates affected when the riskiness of bonds rises

Using both the supply and demand for bonds and liquidity preference framework, show how interest rates are affected when the riskiness of bonds rises. Are the results the same in the two frame works?

  What is the component cost of debt for use in the wacc

The bond currently sells for $1,150, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

  What is insolvency risk

(a) What is insolvency risk? How can liquidity risk and credit risk cause insolvency? What are the two best protections against insolvency at a financial institution?

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