The firm needs to plow back its earnings to fuel growth

Assignment Help Financial Management

Reference no: EM13850023

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 11.5 percent, what is the current share price?

Reference no: EM13850023

Questions Cloud

How would distributed 2pl transaction manager : 1 (a)How would distributed 2PL transaction manager and lock manager algorithms change if a distributed computational model was used. 2.(b)Briefly compare and contrast the centralized 2PL and the distributed 2PL in terms of cost to applications

Jim develops 5 java applications a year : Jim develops 5 Java applications a year. Joe develops 10 Java applications a year. Jim gets paid $5000.00 per application, but Joe gets paid $10000.00 per application.

Operating cash flow for the project : You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $480 per unit and sales volume to be 1,200 units in year 1; 1,125 units in year 2; and 1,000 units in ..

Discuss the advantages associated with working in groups : Critically discuss the advantages and disadvantages associated with working in groups and teams within organizations

The firm needs to plow back its earnings to fuel growth : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend in 10 years and wil..

Estimate the value of the stock : Burklin, Inc., has earnings of $18.6 million and is projected to grow at a constant rate of 4 percent forever because of the benefits gained from the learning curve. Currently, all earnings are paid out as dividends. Estimate the value of the stock

The licopenes are anticancer agents : The Licopenes are anticancer agents. -Give at least three food sources, include and discuss chemical structure, -compare to four other vitamin (included) structures,

A solution of the free base : Benomyl, chlorothalonil, ethylene oxide, fuberidazole, and ziram. find the 2 weak base and estimate what pH the water would need to be to drop their vapor pressure to 50% that of a solution of the free base

Understanding of basic programming concepts : Demonstrate understanding of basic programming concepts by: 1. Constructing a simple flowchart that describes simple logic flow through a program;

User Account

All Pages