What is expected price of the stock four years from now

Assignment Help Finance Basics
Reference no: EM13299129

Waters Copr. has a stock price of $25 a share. The stocks year-end dividend is expected to be $2.50 a share (D1=$2.50). The stock's required rate of return is 16% and the stock's dividend is expected to grow at the same constant rate forever. What is expected price of the stock four years from now?

Reference no: EM13299129

Questions Cloud

Discusses how externalities relate to the willingness to pay : Discusses how externalities relate to the willingness to pay (WTP) analysis and demonstrates solid ability to accomplish the assignment
Calculate how far is the object from the lens : A magnifying glass uses a converging lens with a focal length of 14.5 cm. It produces a virtual, How far is the object from the lens
Justify your choices with examples from your professional : Assume the role of a project manager overseeing the construction of a 15-mile road. The work is uniformly spread over 12 weeks. Suppose the client has approached your firm and has requested an additional 3 miles to be added to the road without
Determine what minimum diameter piston is required : A hydraulic cylinder must produce a minimum force of 3 kN for a pressure of 800 kPa. What minimum diameter piston is required
What is expected price of the stock four years from now : The stock's required rate of return is 16% and the stock's dividend is expected to grow at the same constant rate forever. What is expected price of the stock four years from now?
Delivering innovation and inspiration : DELIVERING INNOVATION AND INSPIRATION
What is the frequency of the light used : Monochromatic light falls on a slit that is 3.50 multiplied by 10-3 mm wide. what is the frequency of the light used
Find drag force fd on golf ball assuming to smooth sphere : Determine the drag force FD on a golf ball assuming it is a smooth sphere. (Assume the air is at 60 F and standard pressure.) Now determine the drag force on an actual golf ball assuming CD = 0.25. How do the two forces compare
What is the stock expected price seven years from today : The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.4, the risk-free rate is 3%, and the market risk premium is 6%. What is the stock's expected price seven years from today?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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