What does market believe will be the stock price at end year

Assignment Help Financial Econometrics

Reference no: EM13334858

You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50) has a beta of 0.9. The risk-free rate is 3.0%, and the market risk premium is 4.5%. Keller currently sells for $48.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?

Reference no: EM13334858

Questions Cloud

Determine how many cars must the firm sell to break even : Assume your firm is an auto manufacturer. Its fixed cost for a certain type of car is $5 billion. The variable cost per unit is $18,000, and you sell the car for $30,000.

Determine the period of oscillation : A block of mass 0.379 kg is placed on the end of a spring which has a stiffness of 216 N/m. It is pulled down 4.40 cm and released. What is the period of oscillation

Determine what is stocks value per share at constant rate : Smith Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 8% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 11%.

Describe the situation facing mensa at the time : Describe the situation facing Mensa at the time of the case. This should include the major issues facing the company and the decisions that need to be made. You are to spend no time on corporate history. You must consider the past, but your analysis ..

What does market believe will be the stock price at end year : Keller currently sells for $48.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years

Find the tax law to complex and have a cpa : The IRS only enforces the law Congress makes. However, it's widely known that many Congressman find the tax law to complex and have a CPA prepare their taxes.

What are their strongest legal arguments explain. : Drive-In Don's fast food restaurant sells the most delicious burgers in town at the most affordable price. Elementary and high schools in the vicinity have contracted with the restaurant to serve burgers during lunch hour. However, the county health ..

Write a computer program to simulate the traffic : Need to do the Requirements, Product specification, Software management plan and review minutes and time log for the project. I've attached the outline for all these phases.

Explain how much gold metal can be electro-plated : How much gold metal (in grams) can be electro-plated from a gold (III) solution with 1.50 V and 2200 mAh. I think it is 16.17 grams

User Account

All Pages