What is its required return

Assignment Help Financial Management
Reference no: EM131317656

Suppose Universal Forest’s current stock price is $72.00 and it is likely to pay a $0.56 dividend next year. Since analysts estimate Universal Forest will have a 14.4 percent growth rate, what is its required return? (Round your answer to 2 decimal places.)

 Required return %

Reference no: EM131317656

Questions Cloud

How do you find the exact value of the line integral : What is the value of the line integral of the earth's gravitational field intensity around a closed path?
Summarize the project requirements and other assumptions : Imagine that you work as the project manager for an IT department. Your organization has recently approved the development of a mobile application. As the project manager, you will manage the development of the project. The project will include us..
Find the approximate value of the line integral of a vector : How do you find the work done in moving a test charge by an infinitesimal distance in an electric field?
Explain what is meant by wear-leveling in flash drives : What is the capacity of a hard drive (in GB) consisting of 120,000 tracks, 4,000 sectors, and 4 surfaces? Assume each block has 512 bytes. Explain what is meant by wear-leveling in Flash drives?
What is its required return : Suppose Universal Forest’s current stock price is $72.00 and it is likely to pay a $0.56 dividend next year. Since analysts estimate Universal Forest will have a 14.4 percent growth rate, what is its required return?
What is its required return : Suppose Paccar’s current stock price is $102.45 and it is likely to pay a $2.16 dividend next year. Since analysts estimate Paccar will have a 13.5 percent growth rate, what is its required return?
What will be the new portfolio beta : You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70?
How many comparison are there if we use bubblesort algorithm : How many comparisons are there if we use BUBBLESORT Algorithm? Using the MergeSort Algorithm, How many times the function merge (11,12) will be invoked.
What is the determinant expansion for the curl of a vector : What is the determinant expansion for the curl of a vector?

Reviews

Write a Review

Financial Management Questions & Answers

  Most you should be willing to pay today for this investment

You have the chance to receive $700 at the end of 2 years. a) If you can earn 5% on similar risk investments, what is the most you should be willing to pay today for this investment (i.e., today's value)? b) If you pay $650 today would you be earning..

  What is the variable cost per unit

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.80 per unit, and the variable labor cost is $6.50 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $700,000 during a year in wh..

  What is its pretax cost of debt-cost of equity

Blue Bull, Inc., has a target debt-equity ratio of .73. Its WACC is 8.7 percent, and the tax rate is 38 percent. If the company’s cost of equity is 11.3 percent, what is its pretax cost of debt?

  Forecasts of revenues over the lifetime of project

These are the forecasts of revenues over the lifetime of a project. Assume all cash flows occur at the end of the year. This hint is optional; you don't have to read this. This is only to help you, if you are confused by this hint just ignore it and ..

  Transactions outside the operating budget

Metropolis Health System (MHS) has received a wellness grant from the charitable arm of an area electronics company. The grant will run for 24 months, beginning at the first of the next fiscal year. Two therapists and two registered nurses will each ..

  Estimate present value of the cost of defaults on contract

Estimate the present value of the cost of defaults on the contract. Assume that defaults are recognized only at the end of the life of the contract.

  About what happens to the price of the treasury bond

JP Morgan Chase & Co. bank plans on taking a position in Treasury bond futures contracts, which currently have a quote of 105. JP Morgan Chase & Co. bank expects the interest rates to increase over the period of the investment. (The investment in T-b..

  Consider hedge fund with hypothetical initial equity

Consider a hedge fund with a hypothetical initial equity of £ 1,000,000 to invest. The investment company’s strategy involves a long and a short position in equities Ax and Bz. Assume that the positions the hedge fund takes are £900,000 long in Ax an..

  What percentage represents principal for each of three years

Complete an amortization schedule for a $35,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year B..

  Common stock to finance long-term expansion of the business

Given that a company does not yet pay dividends, what will be the immediate effect on earnings per share (EPS) by issuing common stock to finance long-term expansion of the business?

  What is the present value of the savings

Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8%, what is the present value of the savings?

  Cash management system free up

Norma’s Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two and one-half days. If the com..

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