Require rate of return, The last annual dividend on KCBT

Require rate of return

Assignment Help Financial Management

Reference no: EM131057718

The last annual dividend on KCBT Corporation's common stock, paid yesterday, was $0.50. If you require a rate of return of 10 percent,

If you expect the dividends on KCBT to grow at a constant rate of 9 percent, what is the highest price you should be willing to pay for this stock?

Reference no: EM131057718

Questions Cloud

Considering project that complements existing business : Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.98 million. The additional net working capital will be recovered in full at the end of the project’s life. The corpora..

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

Four-year project to improve its production efficiency : Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $380,000 is estimated to result in $145,000 in annual pretax cost savings. The shop’s tax rate is 30 percent and its discount ..

Duration of this pension funds liabilities : A pension fund manager expects that her fund will need to pay $2.5 million in benefits at the end of each of the next three years. If the fund values its liabilities using a 9% discount rate, what is the DURATION of this pension fund's liabilities (i..

Require rate of return : The last annual dividend on KCBT Corporation's common stock, paid yesterday, was $0.50. If you require a rate of return of 10 percent, If you expect the dividends on KCBT to grow at a constant rate of 9 percent, what is the highest price you should b..

Calculate dividend yield and percentage capital gain : You purchased 1,000 shares of stock ABC for $34 per share and 300 shares of stock XYZ for $240 per share exactly one year ago. During the year, stock ABC paid a $1.60 dividend per share and XYZ did not pay a dividend. Calculate (i) the dividend yield..

The semi-strong form of market efficiency : Geothermal corporation issued a press release before the stock market opened announcing that its earnings are below last year’s earnings. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market e..

What must be the expected annual cash flow : A project has an initial cost of $90,870, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 12.2 percent, its net present value is $134,961. What must be the expected annual cash flow?

Private cemetery business is looking up : The Xdiagnose Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is “looking up.” The project requires an initial investment of $2.4 million. If Xdiagnose requires a 13 percent return on such undert..

User Account

All Pages