The stock predicted price three years from now

Assignment Help Financial Management
Reference no: EM132012724

1. A stock is currently priced at $40.5. Its dividend is expected to grow at a rate of 6.1% per year indefinitely. The stock's required return is 10.9%. The stock's predicted price 3 years from now, P3, should be $________.

2. A stock is expected to pay the following dividends: $1.1 four years from now, $1.5 five years from now, and $2 six years from now, followed by growth in the dividend of 6% per year forever after that point. There will be no dividends prior to year 4. The stock's required return is 12%. The stock's current price (Price at year 0) should be $____________.

Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).

Reference no: EM132012724

Questions Cloud

Calculate the appropriate discount rate to use for project : The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas.
What is the ending retained earnings balance : The company also issued $5,465 in new stock during the year. What is the ending retained earnings balance?
Normal distribution-bell curve : What would be the range of time for 68% of this data? Would this be a normal distribution/bell curve?
Find the fundamental frequency for longitudinal vibration : Consider a vertical uniform bar shown in Fig. Use Rayleigh method to find the fundamental frequency for the longitudinal vibration
The stock predicted price three years from now : The stock's predicted price 3 years from now, P3, should be $________.
Calculate the dimensions that will yield the maximum area : Calculate the dimensions that will yield the maximum area (remember, area = length times width).
Angle between the sides change when the first side : At what rate does the angle between the sides change when the first side is 25 cm long, the second side is 39 cm, and the angle is p/4?
Find the length of the rope : Find the length of the rope. (Round to the nearest tenth of a foot, if necessary).
Trade on your expectations of exchange rate change : If you conduct a speculative trade on your expectations of exchange rate change, and your expectations are correct,

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