What is the expected price of the stock two years from now

Assignment Help Financial Management

Reference no: EM131881969

1. FSL is expected to pay a dividend of $2 one year from now. Dividends are expected to grow at 6% per year, and the required return on the stock is 16%. What is the expected price of the stock 2 years from now? Answer to 2 decimal places.

2. A stock sells today for $38, and just paid a dividend of $2. If the growth rate is 4%, what is the required return on the stock? Answer to 4 decimal places.

Reference no: EM131881969

Questions Cloud

What is an estimate of steady company cost of equity : What is an estimate of Steady Company's cost of equity Steady's cost of equity capital is.

Most traders in the market are rational-self-interested : Suppose you think that most traders in the market are rational, self-interested, and risk neutral

Sensitivity of NPV-Sensitivity of OCF and Increase in OCF : What is the sensitivity of OCF to changes in the variable cost figure? Calculate the base-case operating cash flow and NPV.

What is your best estimate of the company cost of equity : If the stock sells for $40 per share, what is your best estimate of the company's cost of equity?

What is the expected price of the stock two years from now : Dividends are expected to grow at 6% per year, and the required return on the stock is 16%. What is the expected price of the stock 2 years from now?

What growth rate must investors expect : What growth rate must investors expect if the stock currently sells for $51?

Compact fluorescent lamps-watt incandescent light bulb : Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense?

What is the expected price of GDL one year from now : What is the expected price of GDL 1 year from now?

What is the npv of this expansion : If the coffee company's WACC is 9.8 %, what is the NPV of this expansion?

User Account

All Pages