The dividend payout ratio will be 40 and return on equity

Assignment Help Finance Basics
Reference no: EM13570198

A stock will not pay dividends until three years from now. the dividend then will be $2.00 per share, the dividend payout ratio will be 40% and return on equity will be 15%. if the required rate of return is 12%, which on the following is closest to the value of the stock?

A. $27

B. 33

C. $53

D. $67

Reference no: EM13570198

Questions Cloud

Todays fashion is a local retailer of trend setting : todays fashion is a local retailer of trend setting clothing. the company income statement and comparative balance
The equity section of the balance sheet for hilton web-cams : the equity section of the balance sheet for hilton web-cams looks like thiscommon stock. .25 par 400000paid in capital
Gill corporation manufactures model airplane the company : gill corporation manufactures model airplane. the company purchased for 170000 automated production equip that can make
Assume the original facts except the land was valued at : lockhart corporation is a calendar-year corporation. at the beginning of 2013 its election to be taxed as an s
The dividend payout ratio will be 40 and return on equity : a stock will not pay dividends until three years from now. the dividend then will be 2.00 per share the dividend
What are your thoughts on this situationwhat are your : think- what do you think caused or contributed to the recent market meltdown and what can we do to prevent it happening
The next annual dividend payment by hot wings inc is : the next annual dividend payment by hot wings inc. is expected to be 4.95 per share and is expected in 1 year.
The variable materials cost is 543 per unit and the : night shades inc. nsi manufactures biotech sunglasses. the variable materials cost is 5.43 per unit and the variable
A company reports pretax accounting income of 12 million : a company reports pretax accounting income of 12 million but because of a single temporary difference taxable income is

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the following is not likely to have induced u.s.

According to the text, which of the following is not likely to have induced U.S. firms to expand globally?

  What role does the cost of capital play in the overall

1.what role does the cost of capital play in the overall financial decision making of the firms top managers?2.why do

  Construct a dupont equations and compare the companys ratios

If the firm had a pronounced seadonal sales pattern or if it grew rapidly during the year how might that affect the validity of your ration analysis? How might you correct for such potential problems?

  Conch republic electronics is a midsized electronics

include a brief summary of the case background description of this case study given below and the answer to each

  A successful alumnus gives state university 2 million to

a successful alumnus gives state university 2 million to establish an endowed scholarship fund. if the university can

  Determine the amount of amortization expense

Kerr Corporation purchased a patent on January 1, 2006 for $180,000. The patent had a remaining useful life of ten years at that date. In January of 2007, Kerr successfully defends the patent at a cost of $81,000, extending the patent's life to 12/31..

  Computing the additional costs

Worrix Company manufactures and sells 3,000 premium quality multimedia projectors at $12,000 per unit each year. At the current production level, the Company's manufacturing costs include variable costs of $2,500

  What is the service rate

Using Sally's estimate of demand that follows, how many T-shirts should she produce for the upcoming event?

  How would this be expected to affect the profits earned

If Decko Co. had established its subsidiary in Tokyo, Japan, instead of China, would its subsidiary's profits be more exposed or less exposed to exchange rate risk.

  What rate should the shop report

Ricky Ripov's Pawn Shop charges an interest rate of 13.75 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. What rate should the shop report?

  A portfolio of bonds consists of five bonds whose default

a portfolio of bonds consists of five bonds whose default correlation is zero. the one-year probabilities of default of

  Clculate realized rate of return for investors who

six years ago the singleton company sold a 20-year bond issue with a 14 percent annual coupon rate and a 9 percent

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