User Account

All Pages

Required rate of return on the stock-incipo inc

Assignment Help Finance Basics
Reference no: EM132466038

Incipo, Inc. earned $11.4 million for the fiscal year ending yesterday. The company also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.2 million shares of common stock outstanding. The current stock price is $36.70. The historical return on equity (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock? (Hint: use the retention ratio and ROE to estimate the growth rate)

Reference no: EM132466038

Questions Cloud

Calculate the total relevant cost : Calculate the total relevant cost.Stuart Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which high-quality
Beverlys expense for import duties : Beverly's expense for import duties in 2018 was $15,200,000. Is it a permanent or temporary difference? Will you add or subtract it to Earning before taxes?
Conclusion of original modigliani and miller proposition : What are the main assumptions and the basic conclusion of the original Modigliani and Miller proposition on the capital structure? Explain briefly.
What debt-equity ratio is needed for the firm : What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
Required rate of return on the stock-incipo inc : Incipo, Inc. earned $11.4 million for the fiscal year ending yesterday. The company also paid out 30 percent of its earnings as dividends yesterday.
Operating earnings and cash flows from operations : When operating earnings and cash flows from operations are dissimilar, which of the following ratios is a better measure of long-term solvency?
Expectations theory of the term structure of interest : If the unbiased expectations theory of the term structure of interest rates holds, what is the one-year interest rate expected one year from now, E(2r1)?
Advanced Statistics Questions - What is the critical path : Advanced Statistics Questions - Using the normal time, what is the critical path, the project completion time, the total time required to complete activities
How much can you withdraw each month from account : How much can you withdraw each month from your account, assuming a 25 year withdrawal period?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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