What is current share price

Assignment Help Financial Management
Reference no: EM131492005

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.80, $17.80, $22.80, and $4.60. Afterwards, the company pledges to maintain a constant 5.75 percent growth rate in dividends, forever.

Required: If the required return on the stock is 8 percent, what is the current share price?

Reference no: EM131492005

Questions Cloud

Who should define the project scope : Who should define the project scope? Users or IT staff? What are the definitions of each group (i.e., User, IT Staff, IT manager, business owner, administration
Define the outbound data traffic : What is an expected percentage utilization for a network?
Involved with communication links : Can someone tell me what protocols are involved with communication links, such as to internet connectivity.
Define per-packet load balancing : What networking equipment is usually found in the core of a campus network?
What is current share price : If the required return on the stock is 8 percent, what is the current share price?
Subroutines in assembly language programming : Discuss the use of the stack when using subroutines in Assembly Language programming. Make sure to reference the stack pointer and the struction pointer.
What is the purpose of the access layer : Can routing policies be implemented in the distribution layer? Why or why not?
Compare and contrast the project management life cycle : Compare and contrast the project management life cycle with the system development life cycle (SDLC)? Why is project management different from normal management
What is change in price bond will experience in dollars : A 6.60 percent coupon bond with ten years left to maturity is priced to offer a 8.2 percent yield to maturity.

Reviews

Write a Review

Financial Management Questions & Answers

  Potential development with respect to call option

The treasurer of Miller Co. has read on the Internet that the stock price of Wade Inc. is about to take off. In order to profit from this potential development, Miller Co. purchased a call option on Wade common shares on July 7, 2014, for $240. The c..

  Firm efforts to reduce days of sales in inventory

The cash conversion cycle of a firm is presented below. What conclusion is BEST supported by this information? The firm's efforts to reduce the days of sales in inventory are paying off. The firm's credit terms appear lenient, resulting in few days o..

  Automatic investment account

You have an automatic investment account in which $200 of your checking account is electronically transferred to a money market account each week.

  Coupon bonds on the market with eight years

The Timberlake-Jackson Wardrobe Co. has 10.8 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,129.70, what is the YTM?

  What must expected return on this stock be

A stock has a beta of 1.24, the expected return on the market is 10 percent, and the risk-free rate is 4.5 percent. What must the expected return on this stock be?

  What is your dollar return

You purchase 15 shares of Initech stock at $25 per share. Later, you sell your shares when the price is $30 per share. What is your dollar return?

  Complex bank pays interest on accounts compounded annually

First Simple Bank pays 8.5 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 15..

  What would its future value be

What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be?

  Beta and cost of capital

Company "A" has a beta of 1.5 and a cost of capital of 25%. Company "B" has a beta of 0.8 and a cost of capital of 15%. When evaluated at a rate of 15%, the project shows an NPV of +$5 million, and when evaluated at a rate of 25%, the project shows a..

  What is the crossover rate for these two projects

Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 –$ 20,500 –$ 20,500 1 8,975 10,350 2 9,350 7,925 3 8,925 8,825 Calculate the IRR for each project. What is the crossover rate for these two projects?

  List a way low income might interfere with your life

One out of five older older adults have income from earnings . In 2014 ,the median annual income of the four-fifths of people age 65 and older and older who are fully retired was $18,096.Use this figure to develop a monthly budget ($1500 a month) wha..

  What is current spot price of gold if lease rate on contract

What is the current spot price of gold if the lease rate on the contract is 1.5%, the risk-free rate is 6%, and the 1-year forward price is $313.81?

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