Violet sky food stock pays quarterly dividends

Assignment Help Financial Management
Reference no: EM131990629

Violet Sky Food stock pays quarterly dividends and has an expected annual return of 6.56 percent. The stock is expected to have a price of 115.78 dollars in 3 months from today and is expected to have a price of 116.3 dollars in 6 months from today. What is the current price of Violet Sky Food stock if the firm is expected to pay quarterly dividends forever and the quarterly dividend in 3 months from today is expected to be 2.14 dollars?

Reference no: EM131990629

Questions Cloud

Evaluate two network monitoring technologies : Evaluate 2 network monitoring technologies. These should be able to provide you with a graphical look at your network nodes and layout.
Current price of one share of oxygen optimization stock : The expected annual return for the stock is 13.71 percent. What is the current price of one share of Oxygen Optimization stock?
Define value-based models of payment : Define value-based models of payment. Describe an accountable care organization payment system.
Examine three types of Enterprise Application Software : GB570 Managing the Value Chain Assignment - Enterprise Application Software and Value Chain Management. Identify and examine at least three types and of EAS
Violet sky food stock pays quarterly dividends : Violet Sky Food stock pays quarterly dividends and has an expected annual return of 6.56 percent.
What is the price of the stock expected to be in one year : The expected return for the stock is 19.68 percent. What is the price of the stock expected to be in 1 year?
The relationship between the role of a child and family : At least two insights you have gained with regard to the impact of parents, families, early childhood care and education, and community on childrens development
Identify the cloud type that might be most appropriate : identify the cloud type that might be most appropriate for the service line you selected out of the Public, Private, Community and Hybrid.
Analyze the color-blind perspective can be applied or not : Banks (2016), indicates that the nonracist, color-blind perspective is one in which a person's race does not matter.

Reviews

Write a Review

Financial Management Questions & Answers

  Common products have made its first issue of common stock

Common products have made its first issue of common stock in 2012. It raised $2 million by selling 20,000 shares of stock to the public. These are the only shares outstanding. The par value of each share was $2. In 2015 common products had a net inco..

  The interest parity condition states

Suppose the interest rate in U.S is 3 percentage points higher than interest rate in China. Should this invester buy U.S. bond or Chinese bond now and why?

  What would the price per share be the recapitalization

Monroe Inc. is an all-equity firm with 500,000 shares outstanding. It has $2,000,000 of EBIT, and EBIT is expected to remain constant in the future. The company pays out all of its earnings, so earnings per share (EPS) equal dividends per share (DPS)..

  Calculating present values band future values

Calculating Present Values. Calculating Future Values. Calculating rates of return. Refer back to Series EE saving bonds.

  Compound edwards annually from his investment account

Dr. Rivas plans to retire today and would like an income of $500,000 per year for the next 15 years with the income payments starting 1 year from today. He will be able to earn interest 6% per year compound edwards annually from his investment accoun..

  Explain about derivatives

Explain about derivatives. Derivative is a product whose value is derived from the value of one ormorebasic variables,Explain Products, participants and functions.

  Country risk rating into the capital budgeting analysis

A firm may incorporate a country risk rating into the capital budgeting analysis by:

  Federal reserve notes held in bank vaults are the liability

Federal Reserve notes held in bank vaults are the liability or obligation of, When the New York Fed sells Treasury securities to a securities dealer,

  What would be your one-period return on the investment

If you sold the bond at the end of the year, what would be your one-period return on the investment?

  What is the debt-equity ratio

Weston Mines has a cost of equity of 20.8 percent, a pretax cost of debt of 9.4 percent and a return on assets of 17.1 percent. Ignore taxes. What is the debt-equity ratio?

  Modify equipment for special use by the firm

You must evaluate the purchase of a new machine for a company. The based price is $165,000, and it would cost another $45,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after..

  Futures contract on copper traded

A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000 pounds. Today you enter into a long futures position of 10 contracts on copper at $3.43 per pound, maturing in 6 months. If copper is trading at $3.75..

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