User Account

All Pages

What do investors expect the stock to sell for at the end

Assignment Help Finance Basics
Reference no: EM132022750

Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 16%. A share of stock sells for $70 today. It will pay a dividend of $5 per share at the end of the year. Its beta is 1.3. What do investors expect the stock to sell for at the end of the year?

Reference no: EM132022750

Questions Cloud

Average annual compound growth rate of dividends : At year-end 2014, it paid a dividend of $5. What was the average annual compound growth rate of dividends for this firm.
What was jesus point in the teaching : What was Jesus' point in the teaching? What sort of relevance does this teaching have for other worldviews? What does this teaching reveal about Jesus?
How much will each annual payment be : This loan is to be repaid in equal annual installment at the end of each over the next 8 years. How much will each annual payment be?
Nucleotide sequence of dna from humans and five : A 100-nucleotide sequence of DNA from humans and five other vertebrates were analyzed, with the following results:
What do investors expect the stock to sell for at the end : Its beta is 1.3. What do investors expect the stock to sell for at the end of the year?
What is the predicted returns for apex-bpex : The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as:
Discuss about how to change the oil in your car : Your instructions should help users to perform any kind of task that requires several steps or stages. Here are some topic ideas (don't be limited by them).
Salary increases at an average annual rate : If the salary increases at an average annual rate of 9.09 percent, how long will it take to reach this?
Summarize the case study providing an overview of the events : FS320: Find a Case Study published within the last 5 years which exemplifies how both structural and nonstructural mitigation were utilized.

Reviews

Write a Review

Finance Basics Questions & Answers

  Which ones are deductible for agi

Analyze the above expenses, and determine which ones are deductible for AGI. Please support your position.

  Zero cumulative surplus for the quarter

Midwest Meats has a net cash inflow for the quarter of $2,258. The minimum and beginning cash balance is $500 and the firm has $2,304 in short-term debt. The quarterly interest on the loan is $33. How much does the firm need to borrow or how much ..

  What would be the total cost of those banking fees

An ATM with a service fee of $2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 3 percent rate) of the annual amount.

  Comment on the value of beta

A company is estimating its Weighted Average Cost of capital (WACC). The company has collected the following information.

  What is the price of the bond using a semiannual convention

Wesley Company will issue a zero-coupon bond this coming month. The projected yield for the bond is 5%. If the par value of the bond is $1,000, what is the price of the bond using a semiannual convention if a. The maturity is 20 years? b. The maturit..

  What is the eps figure for 2008

Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 20..

  What is target costing

What is target costing? Describe how costs are reduced so that the target cost can be met.- Packstar Company produces ready-to-cook oatmeal.

  A hedge fund is long 315 million in certain stocks and

a hedge fund is long 315 million in certain stocks and short 225 million in other stocks. the hedge funds equity is 185

  Calculate the depreciation expense for 2015

a. Calculate the depreciation expense for 2015. b. How much money (cash) does the company have?

  International marketing logistics difference between heavy

difference between heavy lift surcharge and long lift surcharge ltbrgtre-order level rol and re-order quantity

  Compute the three equal payments

To borrow $2,700, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year.

  What is the diddy cost of equity

Diddy Corp. stock has a beta of 1.4, the current risk-free rate is 6 percent, and the expected return on the market is 15.00 percent.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd