Settle into constant dividend growth pattern

Assignment Help Financial Management

Reference no: EM131071113

Stock A has settle into a constant dividend growth pattern of 6%. The current dividend is $1.59, its current price is 15.90. You are an analyst and believe that the required return on Stock B is the same as that of Stock A. If Stock B pays a constant (flat) dividend of $2.00 what is the estimate of Stock B's price

Reference no: EM131071113

Questions Cloud

Advantage in relation to economics : What is referred to by the term absolute advantage in relation to economics?

The required return on similar-risk bonds : Calculate the value of a $1,000 bond which has 10 years until maturity and pays semi-annual interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 8 percent. Is your bond a premium bond or a discount bond? If th..

Check grammar and writing structure consistency : I really really need your help with my academic paper(attach file) it is 99% done, i just would like you to try "rewrite" it in some other words, check grammar and writing structure consistency.

Course in economic development : What do you hope to gain from a course in economic development (other than a good grade)?

Settle into constant dividend growth pattern : Stock A has settle into a constant dividend growth pattern of 6%. The current dividend is $1.59, its current price is 15.90. You are an analyst and believe that the required return on Stock B is the same as that of Stock A. If Stock B pays a constant..

Company potential projects are equally risky : Florida Electric Company (FEC) uses only debt and equity. It can borrow unlimited amounts at an interest rate of 10 percent as long as it finances at its target capital structure, which calls for 45 percent debt and 55 percent common equity. All of t..

Western european countries : "What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?"

Defined benefit plan in retirement saving plans : For home owner insurance policy (HO3), there is a 80% rule. It is actually a coinsurance clause applied to the building structures. Explain what it means and how does it work? In employee benefits chapter, can you explain why employers are interested..

Why is it necessary to complete a series of biological test : Why is it necessary to complete a series of biological, chemical, and physical test on your soil sample? Explain the purpose the tests conducted at each station....texture, temperature, pH, nutrient testing, & presence of macroinvertebrate..

User Account

All Pages