What is current value

Assignment Help Finance Basics
Reference no: EM132200301

A firm recently paid $0.45 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $80.

If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132200301

Questions Cloud

Create a variety of interesting motions : Write an interactive OpenGL program that choreographs the motion of several two-dimensional geometric objects in a rectangular viewport.
Display the motion of a fan cart on a low-friction track : Write an iteractive computational model that predicts and displays ( as a real-time animation) the motion of a fan cart on a low-friction track.
Ask the user for his two favorite things : Ask the user for his two favorite things. Change the ordered list so that it replaces the previous content with these values.
What would be the stock price in five years : If the growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio
What is current value : If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places
Discuss the demand for and supply of crude oil : Discuss the demand for and supply of crude oil in the world market right now. Discuss the causes for shortage (Excess demand) and surplus (Excess supply).
Determining the dividend per share : Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This growth is expected to continue.
Devise a two-part pricing plan in detail : A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given.
Identify the costs of financial distress : Identify the costs of financial distress. Consider both bankruptcy related costs and the costs associated with distorted decision-taking

Reviews

Write a Review

Finance Basics Questions & Answers

  Time value of money

Darlene needs an investment that will generate income of $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3

  Which satellite should be selected based on pw analysis

Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites.

  What is the weighted average contribution margin

Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi?

  What type of consumer is the ad targeting

What type of consumer is the ad targeting? If you were creating an ad for this product, what type of message and image strategy would you use and why?

  What is the least you will sell your claim

You just won a lottery that promises to pay you $1,000,000 exactly 10 years from today. Because the $1,000,000 payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate single cash payment. Wha..

  Psychological study on impact of sleep

Three students are conducting separate studies. John is interested in whether a psychological study on the impact

  Current price of jiffy common stock

Jiffy Co. expects to pay a dividend of $3.17 per share in one year. The current price of Jiffy common stock is $31.73 per share.

  Estimate of the daily volatility

The parameter in the EWMA model is 0.9. Suppose that the exchange rate at 4 p.m. today proves to be 1.4950. How would the estimate of the daily volatility be updated?

  Briefly describe the basic format of the cash budget

Briefly describe the basic format of the cash budget.

  Taggart incs stock has a 50 chance of producing a 25 return

taggart inc.s stock has a 50 chance of producing a 25 return a 30 chance of producing a 10 return and a 20 chance of

  Issues related to the cost of capital

With respect to issues related to the cost of capital:Select one:a. an increase in the debt ratio will result in greater risk for debtholders but not equityholders.

  Bank a makes a usd 10 million five-year loan and wants to

bank a makes a usd 10 million five-year loan and wants to offset the credit exposure to the obligor. a five-year credit

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