User Account

All Pages

What is a reasonable valuation to place on Franklin Co stock

Assignment Help Accounting Basics
Reference no: EM133023035

Question - Franklin Co. paid dividends per share of $0.48 in 2021. The firm is expected to report earnings growth of 25% in 2022, after which the growth rate is expected to decline linearly over the following six years until it hits 5% in 2027 when growth becomes constant. The stock is expected to have a beta of 0.85, while the Treasury rate is 6.25% and the risk premium on the market is 5.5%. What is a reasonable valuation to place on Franklin Co.'s stock?

Reference no: EM133023035

Questions Cloud

Discuss with adam about completing routine activities : Discuss with Adam about completing routine activities accurately (e.g., understanding the importance of entering data accurateley)
Calculate the cost of equity and the weighted average cost : Calculate the cost of equity and the weighted average cost of capital (WACC) of Mango if it decides to borrow up to the equivalent of 25, 50, 75, or 100
Threat model tool and analyze the threats using stride : Threat modeling Lab - Draw the below diagram in Microsoft Threat Model Tool and analyze the threats using STRIDE
What the effective annual rate of interest : Tangshan Mining issued? $1,000,000 of commercial paper for? $992,500 for 45 days. Based on this? information, what the effective annual rate of interest
What is a reasonable valuation to place on Franklin Co stock : The stock is expected to have a beta of 0.85, while the Treasury rate is 6.25%. What is a reasonable valuation to place on Franklin Co stock
What amount should Phoenix report for Sedona customer list : On its December 31, 2021, consolidated balance sheet, what amount should Phoenix report for Sedona's customer list
Design a home language differentiated lesson : Design a home language differentiated lesson where you will teach grade 3 learners about reading phonics.
Prepare a budgeted income statement : Prepare a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28%
Business in the global marketplace : Which of the following is NOT listed in the text as a reason why more and more companies are doing business in the global marketplace?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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