What is current price of oxygen optimization stock

Assignment Help Financial Management
Reference no: EM131546345

1. Oxygen Optimization stock is expected to be priced at 91.21 dollars in 1 year, pay a dividend of 6.33 dollars in 1 year, and pay a dividend of 6.51 dollars in 2 years. The stock has a risk premium of 11.85 percent, the risk-free rate is 5.6 percent, and inflation is expected to be 3.57 percent. What is the current price of Oxygen Optimization stock?

2. Gomi Waste Disposal stock is currently priced at 72.74 dollars per share and is expected to pay its next dividend, which is expected to be 7.88 dollars, in 1 year. The stock has a risk premium of 11.57 percent, the risk-free rate is 6.98 percent, and inflation is expected to be 4.04 percent. What is the stock price of Gomi Waste Disposal expected to be in 1 year?

Reference no: EM131546345

Questions Cloud

Explain three factors that would affect the bond ratings : Identify and explain 3 factors that would affect the bond ratings.
Require an effective annual return : If you require an effective annual return of 10 percent on this investment, how much will you pay for the contract today?
Dividend discount model and market to book value models : Would the dividend discount model and the market to book value models be good ways to determine the intrinsic value of Jet Blue’s stock?
What is the average collection period : Miyagi Data, Inc., sells earnings forecasts for Japanese securities. What is average collection period?
What is current price of oxygen optimization stock : The stock has a risk premium of 11.85 percent, risk-free rate is 5.6 percent, What is the current price of Oxygen Optimization stock?
How does it compare with the required return : How does it compare with the required return? If different, why might they be different?
Implied value of roe on future investment opportunities : what is the implied value of the ROE on future investment opportunities? what is the implied value of the ROE on future investment opportunities?
What is the expected return of a portfolio of two stocks : hat is the expected return of portfolio of two stocks that has 3,500 shares of stock A, which has a price of 24.2 dollars per share and expected return of 7.83%
Firm need to wait to purchase this machine for cash : How long does the firm need to wait to purchase this machine for cash if the firm does not save any more money and earns 8.00 percent on its savings?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the incremental profit

What is the incremental profit? Would the firm's break-even point increase or decrease if it made the change?

  What is the yield-to-maturity of this bond

United Air has a 6.5% coupon 15 year bond (par value = $1,000). Assume that coupon payments are semi-annual and that the current price is $982.55. What is the yield-to-maturity of this bond? Be sure to report on an annualized basis

  Average return and standard deviation for market and stock

You are given the following information concerning a stock and the market: Returns Year Market Stock 2008 15 % 27 % 2009 14 30 2010 15 6 2011 –14 –24 2012 37 16 2013 15 25 1. Calculate the average return and standard deviation for the market and the ..

  Explain what you need to invest each year

How much do you need to invest today to have $2 million in 43 years assuming you can earn 6.5% annually? Explain what you need to invest each year

  Use capital asset pricing model to find the required return

For each of the cases shown in the following? table, use the capital asset pricing model to find the required return. Round to the nearest cent.

  Break down the variance of each stock to the systematic

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 1.0% + 0.45RM + eA RB = –1.0% + 1RM + eB σM = 16%; R-square A = 0.28; R-square B = 0.21 Break down the variance of each stock to the sys..

  The projects net present value

Calculate the NPV for a 25 year project with an initial investment of 40000 and a cash inflow of 6000 per year. Assume that the firm has an opportunity cost of 18% . Comment on the acceptability of the project

  Define the general contracts and general scope of work

Define the following terms: General Contracts · General scope of work · Contract Intent · Contract Indication · Reasonable review · Patent errors · Change clause(order) · Pass-through clause Contract Bonds and Insurance · Bid Bond · Performance Bond ..

  What is the value of galts equity using the apv method

Galt Industries is expected to generate free cash flows of $24 million per year. Galt has permanent debt of $80 million, a corporate tax rate of 40%, and an unlevered cost of capital of 12% and its cost of debt capital is 6%. What is the value of Gal..

  Find the profit available via covered interest arbitrage

Suppose the one year forward rate is £1.1/$. Find the profit available (in terms of pounds) via covered interest arbitrage.

  Straight-line to zero over its three-year tax life

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,430,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..

  Before-tax and after-tax cash flows for each year

The before-tax and after-tax cash flows for each year of the holding period and the before-tax and after-tax equity reversion.

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