Problem regarding the current dividend

Reference no: EM131016759

You are valuing a toy store with a current growth rate of 18.2% which is expected to decline linearly over the next six years to a constant rate of 4.1%. Similar firms have a current required rate of return of 9.6%. what is the stock value today if its current dividend is $2.50?

Reference no: EM131016759

Questions Cloud

What is the difference between safety and security : What is the difference between safety and security? Explain the benefits of a card entry system over the hard key method traditionally employed

Describe the diffrenece between the short-run and long-run : List and describe the variables , other than price, thet cause a shift in the supply curve

Assume that henson factors the receivables : On February 1, 2012, Henson Company factored receivables with a carrying amount of $500,000 to Agee Company. Agee Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables.

Draw a well labeled graph of the market for paintbrushes : Draw a well labeled graph of the market for paintbrushes. In your graph indicate the equilibrium price and the equilibrium quantity. Also, identify the area that corresponds to CS and the area that corresponds to PS.

Problem regarding the current dividend : Similar firms have a current required rate of return of 9.6%. what is the stock value today if its current dividend is $2.50?

What is capital structure of the firm based on market values : What is the capital structure of the firm based on market values - What is Harvard University's weighted-overage cost of capitol?

The incoming solar radiation at a place on the surface : The incoming solar radiation at a place on the surface of the earth is 1.2kW/m2 . the amplitude of electric field corresponding to this included power is nearly equal to

Company wants to break down the maintenance : To do this, it may be helpful to first determine how much of the $305,380 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.)

A parellel plate air capacitor has plates : A parellel plate air capacitor has plates of 1500cm2 seperated by 5mm. if a layer of dielectric 2mm thick and relative permittivity 3 is now introduced between the plates, then the new seperation in mm between the plates, so that the capacitance valu..

User Account

All Pages