What is estimate for market capitalization rate of asset

Assignment Help Financial Management
Reference no: EM131942952

Zombie Manufacturing Company is expected to pay a dividend of $4.63 in the upcoming year. Dividends are expected to grow at 6.4% per year. The risk-free rate of return is 2%, and the expected return on the market portfolio is 8.6%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth dividend discount model to determine the value of the stock. The stock's current price is $96. What is your estimate for the market capitalization rate of this asset?

Enter answer in percents to two decimal places.

Reference no: EM131942952

Questions Cloud

The best way to save for retirement : Real estate investments include all except which of the following. The best way to save for retirement is to
What is the new value of the portfolio : What is the new value of the portfolio? What return did the portfolio earn?
What are the initial bid and ask quotes : The market is cleared by a risk neutral competitive market maker quoting prices at which the trading takes place. What are the initial bid and ask quotes?
Diversifying among stocks based in countries outside : Diversifying among stocks based in countries outside the United States
What is estimate for market capitalization rate of asset : The stock's current price is $96. What is your estimate for the market capitalization rate of this asset?
Indicate the impact of he corporate actions on cash : Change in the Cash Account: Indicate the impact of he following corporate actions on cash,
Your organisation is multinational magazine publisher : Your organisation is a multinational magazine publisher that relies heavily on its IT system.
What was his total return for the year on this investment : Thomas ended the year with 262 shares of the fund with an NAV of $ 28.61. What was his total return for the year on this investment?
What is the EAR and What is the APR : If you decided not to take advantage of the cash discount, what is the EAR? What is the APR?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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