Stock price according to the constant growth

Assignment Help Finance Basics
Reference no: EM132557320

The last dividend of Delta, Inc. was $14.75, the growth rate of dividends is expected to be 2.00 percent, and the required rate of return on this stock is 11.84 percent. What is the stock price according to the constant growth dividend model?

Round the answer to two decimal places.

Reference no: EM132557320

Questions Cloud

Develop a portfolio equally : You want to develop a portfolio equally as risky as the market, and you have $1,700,000 to invest.
What is the net present value of a project : What is the net present value of a project with the following cash flows and a required return of 12 percent?
Problem - Volume Trade-Off Decisions : Problem - Volume Trade-Off Decisions. How much variable overhead cost is incurred to manufacture one unit of each of the company's five products
What are your recommendations to make the course better : Which of the topics presented to you thus far in this course has been most difficult to understand? Why? What are your recommendations to make this course.
Stock price according to the constant growth : The last dividend of Delta, Inc. was $14.75, the growth rate of dividends is expected to be 2.00 percent, and the required rate
How about looking at it from the team''s perspective : If I was an athlete negotiating a contract, would you want a big signing bonus payable immediately and smaller payments
Percentage change in price of bond sam and bond dave : Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam
Difference for consumers in nova scotia and quebec : To the nearest cent, what is the price difference for consumers in Nova Scotia and Quebec?
Relation between the expected growth rate : What is the relation between the expected growth rate of common stock dividends and the dividend payout?

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!

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