Required return-what is the current share price

Assignment Help Financial Management

Reference no: EM131055644

1. Terminal Emulator Co. pays a constant $11.66 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, what is the current share price?

2. Screenshot, Inc., just paid a dividend of $3.72 per share on its stock. The dividends are expected to grow at a constant rate of 3.6 percent per year, indefinitely. Assume investors require an 14.4 percent return on this stock. What is the expected price of this stock in 9 years?

Reference no: EM131055644

Questions Cloud

Considering the purchase of an outstanding bond : It is now January 1, 2012, and you are considering the purchase of an outstanding bond that was issued on January 1, 2008. It has a 7 percent annual coupon and had a 30-year original maturity. what rate of return would you probably earn, assuming you..

Beta and required rate of return stock : Beta and required rate of return A stock has a required return of 16%; the risk-free rate is 5.5%; and the market risk premium is 3%. What is the stock's beta? New stock's required rate of return will be %.

Cause analysis on a significant public health problem : B. Create a logic model (inputs, processes, outputs, outcomes) for solving the selected problem. Provide a 100-150 word summary explaining the logic model.

What is the family credit score : Mr. Childress has a $35,000 life insurance policy with a cash surrender value of $1,100.Suppose the lender uses the credit scoring system presented with this chapter and denies all application scoring fewer than 360 points. Is the Childress family..

Required return-what is the current share price : Terminal Emulator Co. pays a constant $11.66 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, what is the current sh..

Npv of the higher npv project : Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 90 . Project B, of less than average risk, will produce cash flows of $225 at the end of Years 3 and 4 only. List the NPV of the higher NPV project.

Research paper on your improvement project : FINAL: You have been working on your Improvement Project for the past few weeks. For your final work on this project, you will now put the pieces together by incorporating your research along with a report on the changes you made and the outcome o..

What is the yield on nine-year treasury note : The real risk-free rate is 1.5 percent. Inflation is expected to be 3.5 percent this year, 4 percent next year, and 5 percent thereafter. The maturity risk premium is estimated to be 0.08 ´ (t - 1)%, where t is the number of years to maturity. What i..

What happened as a result of the buffalo stamped : During Haun's westward journey what happened as a result of the buffalo stamped?

User Account

All Pages