What is mi stock price today

Assignment Help Finance Basics
Reference no: EM133121425

Problem 1

Micro Inc. (MI) just paid a dividend of $2.00/share. MI has a new technology that is expected to go on the market this year, and their dividend is expected to grow at 10% per year for the next ?ve years (i.e., the growth rate applies only to the next ?ve dividend payments). After that, the dividend is not expected to increase for the foreseeable future (i.e., forever). The next dividend will be paid exactly in one year. Assume investors require a 10% rate of return (EAR) for MI's stock.

a) What is MI's stock price today?

b) What is MI's stock price in three years from now (right after the dividend payment)?

c) What is MI's stock price in twenty years from now (right after the dividend payment)?

Reference no: EM133121425

Questions Cloud

What is the market price : Malta Inc. offers a bond with an annual coupon rate of 4.5 percent, What is the market price of a $1,000 face value bond
Credit card debt to investment loan : The table below is Tobias and Antonia's balance sheet as of December 31, 2021.
How much may she deduct on her tax return : If Jessica uses the standard mileage method, how much may she deduct on her 2020 tax return (miles were incurred ratably throughout the year)
What is the after-tax amount of the investments : For each of the four alternatives, what is the after-tax amount of the investments? Assume that the contributions are at the end of each year.
What is mi stock price today : Micro Inc. (MI) just paid a dividend of $2.00/share. MI has a new technology that is expected to go on the market this year, and their dividend is expected to g
Factors behind making correct financial decisions : Please include at least 2 linked articles, 1 linked video, and a Graph analysis(table, chart, diagram/graph, column chart, pie graph)for this question.
What is the yield to maturity : The bond is currently priced at $1,046.92 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity
Overview of the risk management project : Identify the FORD company which which could benefit from a risk management strategy
What is the length of operating cycle : On average, Furniture & More is able to sell its inventory in 27 days. The firm takes 87 days on average to pay for its purchases. On the other hand, its averag

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the concept of the time value of money affect

how does the concept of the time value of money affect decisions made across the four executive roles of management

  Do you think that these conditions are realistic

In 2004, Congress adopted a Medicare prescriptioi drug benefit which would, in effect, subsidize the purchase of drugs by the elderly.

  Decision rule to evaluate project

Use the IRR decision rule to evaluate this project; should it be accepted or rejected and why?

  Discuss the impact of the international monetary system

Does your country have a fixed or flexible exchange rate? How does the currency regime impact your countries globalization and trade process?

  What is benchmarking

What is benchmarking, and how do you do it? How would you as a healthcare manager utilize this measurement tool?

  Calculate and plot the levelized cost of energy

Calculate and plot the levelized cost of energy (LCOE) as a function of the debt rate for 4% lessthanorequalto i_debt lessthanorequalto 12%.

  Ace trucking co inc is chartered in michigan it has 100

1. to qualify as an s corporation there is no limit to the number of shareholders.2. a corporation with more than 50

  Acquisitions-verizon wireless

Looking at recent acquisitions of Verizon Wireless, find out two acquisitions to answer the following questions about each acquisition. What is the reason for acquisition that was employed as the logic by your firm in justifying the acquisition? De..

  Shares of pharmaceutical companies

When the FDA makes a public announcement that a major drug has been approved, the stock price of the company developing that drug generally increases on the ann

  What is the expected return of? rio shares

a. What is the expected return of? RIO's shares according to the? CAPM? b. What is the implied price per? share?

  Inventory turnover ratio is 3 times sales are rs 180000

inventory turnover ratio is 3 times sales are rs 180000. opening stock is rs 2000 more than the closing stock.

  Adelaide qualified profit sharing plan

Adelaide qualified profit sharing plan

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