The appropriate discount rate for stock

Assignment Help Financial Management

Reference no: EM131336503

Pharsalus Inc. just paid a dividend (i.e., DO) of $ 4.26 per share. This dividend is expected to grow at a rate of 7.7 percent per year forever. The appropriate discount rate for Pharsalus's stock is 15.0 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).

Reference no: EM131336503

Questions Cloud

Provide a reflection on weeks group activity : The assignment is to provide a reflection on this weeks group activity - regrading the consulting of a new business (clothing store) in terms of management and marketing the business.

What will be the price of the stock after the announcement : The stock of Robotic Atlanta Inc. is trading at $ 35.34 per share. In the past, the firm has paid a constant dividend (i.e., g = 0) of $ 5.51 per share and it has just paid an annual dividend (i.e., DO = 5.51). Assuming that the discount rate remains..

Find the derivative of each of the following functions : In Problems 48-49, the functions f(x), g(x), and h(x) are differentiable for all values of x. Find the derivative of each of the following functions, using symbols such as f(x) and f'(x) in your answers as necessary

Explain what is whole-foods-market : a) Explain what is Whole-Foods-Market' order-winner and three qualifiers (http://www.wholefoodsmarket.com/). b) Explain what would be a decision based on the "Resource View" and one on the "Market View" for this company.

The appropriate discount rate for stock : Pharsalus Inc. just paid a dividend (i.e., DO) of $ 4.26 per share. This dividend is expected to grow at a rate of 7.7 percent per year forever. The appropriate discount rate for Pharsalus's stock is 15.0 percent. What is the price of the stock?

Discuss the changes that social computing is bringing : How does your company or other companies that you have been associated with involve strategic experimentation within its innovation process?Discuss the changes that social computing is bringing to organizations. Do you feel these changes are good f..

Demonstrate competence in independent learning : Develop knowledge of, analyse and critically assess the Literature in a given business - related subject area and in conjunction with a supervisor/adviser, formulate Research questions or objectives in the given subject Area.

Instead of making the regular payment : What is your monthly payment and can you afford to purchase the car? Instead of making the regular payment that you solved for in part a, if you make monthly payments of $500 how soon will you be able to pay off the car or will you be paying less tha..

Examples of the medical dominance of physicians : Give at least three examples of the medical dominance of physicians. In your opinion, should physicians have as much power as they do? Why, or why not? Your response should be at least 75 words in length.

User Account

All Pages