The price of the company stock today

Assignment Help Financial Management
Reference no: EM131910661

Assume today is December 31, 2017. Imagine Works Inc. just paid a dividend of $1.30 per share at the end of 2017. The dividend is expected to grow at 12% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2017)? Round your answer to the nearest cent. Do not round intermediate calculations.

Reference no: EM131910661

Questions Cloud

What is the probability that fewer : a. What is the probability that fewer than 1,430 of the mailings will be returned?
Prepare a presentation that showcases leadership skills : Your task is to develop a PowerPoint presentation that showcases leadership skills and offers professional practice examples.
How early christianity positively impacted the roman empire : After reading Chapter 13 in your textbook, give four specific examples of how Early Christianity positively impacted the Roman Empire before 300 AD.
What is the probability that a person who was polled says : What is the probability that a person who was polled says their next phone will be an android round your answer to four decimal places
The price of the company stock today : Using the dividend growth model, what should be the price of the company's stock today.
What is the probability that the average age : What is the probability that the average age of the wives in the sample is older than the average age of the husbands?
List and discuss several reasons why the tolerance occurred : In the Roman culture, almost all religions were tolerated, but Christianity was persecuted. List and discuss several reasons why this occurred.
Confidence interval for the true percentage : Construct a 95?% confidence interval for the true percentage of students who want MATH533 next session.
What is your estimate of the stock current price : What is your estimate of the stock's current price?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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