Variable growth-discount rate is appropriate for this stock

Assignment Help Financial Management

Reference no: EM131900918

Variable Growth. A fast-growing firm recently paid a dividend of $0.70 per share. The dividend is expected to increase at a 30 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is appropriate for this stock, what is its value? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131900918

Questions Cloud

Develop and submit an external factor evaluation matrix : Using the publicly traded company that you selected in Week 1 for the course project, develop and submit an External Factor Evaluation Matrix

Why would a person who have diabetes mellitus : Why would a person who have diabetes mellitus, cirrhosis, gout, and a 30-pack a year smoking history have low calcium and low sodium levels?

Estimate the social cost of the loss of each of these stream : Imagine that a contingent valuation method is used to estimate the social cost of the loss of each of these streams.

Charge of the risk management team : You are in charge of the risk management team that must investigate this incident and report to the CEO of the hospital.

Variable growth-discount rate is appropriate for this stock : Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is appropriate for this stock, what is its value?

What is integumentary system : What is a(n) Integumentary System? and what would happen if we didn't have one?

Appropriateness of using homogenised and unpasteurised milk : The appropriateness of using homogenised and unpasteurised milk to make hard cheese

List four ways that mendelian : List four ways that Mendelian (single-gene) diseases differ from other types of diseases.

Appropriate application of the term or concept : Why is it important to understand the appropriate application of the term or concept?

User Account

All Pages