What is its expected price four years from today

Reference no: EM13285344

A stock you are evaluating just paid an annual dividend of $2.50. Dividends have grown at a constant rate of 1.5 percent over the last 15 years and you expect this to continue.

a. If the required rate of return on the stock is 12 percent, what is its fair present value?

b. If the required rate of return on the stock is 15 percent, what is its expected price four years from today?

Reference no: EM13285344

Questions Cloud

What types of situations result in troubled debt : What types of situations result in troubled debt? What are some of the general rules for recognizing gain or loss by both parties in a troubled debt situation? How would you report these gains or losses?

Explain two molecular ions of about equal intensity : two molecular ions of about equal intensity at m/z = 180 and 182; IR: 1740 cm-1; 1H NMR: ? 1.30 (3H, t J = 7 Hz); ? 1.80 (3H, d, J = 7 Hz); ? 4.23 (2H, q, J = 7 Hz); ? 4.37 (1H, q, J = 7 Hz).

What is the operating cash flow : Ranney, Inc has sales of $14,900, costs of $5,800, depreciation expense of $1,300 and interest expense of $780. If the tax rate is 40%, what is the operating cash flow?

Calculate the number of hours per year : A wind turbine with a rotor diameter of 50 m is rated at 2500 kW at a hub height wind speed of 10 m/s. Calculate the number of hours per year that the wind is below the cut-in speed

What is its expected price four years from today : If the required rate of return on the stock is 15 percent, what is its expected price four years from today?

Describe the accounting procedures for both bonds : Describe the accounting procedures for both bonds and long-term notes. How are they similar? Provide an example of each. What types of features can bonds carry which make them more attractive than other financial instruments?

What are the eight balanced molecular equations : What are the 8 balanced molecular equations for all of the chemical reactions involved in the copper cycle experiment

What frequency of is heard by the driver of the other car : Two cars are each traveling at 27.0 m/s, and they are approaching each other. What frequency of is heard by the driver of the other car

Explain what volume of na3po4 is required to precipitate : What volume of 0.250 M Na3PO4 is required to precipitate all the lead(II) ions from 180.0 mL of 0.550 M Pb(NO3)2

User Account

All Pages