Share of microsoft stock after your two year vacation

Assignment Help Financial Management

Reference no: EM131607960

Assume Microsoft just paid a dividend of $1.56 per share. Your required rate of return is 10%, and the analysis you’ve done tells you that Microsoft should be able to grow its dividend by a rate of 7% per year. What is the most you should be willing to pay for this stock? Now let’s say you go on a two year trip around the world and come back to find that your analysis of Microsoft has not changed. What is the most you should be willing to pay per share of Microsoft stock after your two year vacation?

Reference no: EM131607960

Questions Cloud

Liability insurance policy from insurer : Jane purchased a $50,000 liability insurance policy from Insurer A.

Managing human capital employees demand : Why should companies go out of their way to supply all the extras that just 20 years ago were unheard of? Don't all these extras run up the cost.

Create your voice mail message : Inform your supervisor that you have completed the email.Confirm to which employees you sent the email.Confirm the date and time when you sent the email.

Wap that inputs three different integers from the keyboard : (Arithmetic, Largest Value and Smallest Value) Write a program that inputs three different integers from the keyboard, then prints the sum, the average.

Share of microsoft stock after your two year vacation : What is the most you should be willing to pay per share of Microsoft stock after your two year vacation?

Explain the components of the barringer : Explain what a feasibility analysis is and why it's important - Describe business models and discuss their importance

Some people disagree with the ipcc findings : Some people disagree with the IPCC findings. What are the motivations of these people and how has this criticism strengthened the science?

Computer models run by climate scientists : What data is used in computer models run by climate scientists, and what exactly do the models tell us?

Arithmetic and geometric average returns for stock : What are the arithmetic and geometric average returns for a stock with annual returns of 10 percent, 9 percent, –6 percent, and 16 percent?

User Account

All Pages