What is next year dividend payment

Assignment Help Finance Basics
Reference no: EM131932951

Question: Allen, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of four percent, forever. The current stock price is $30. What is next year's dividend payment if the required rate of return is 12%?

Reference no: EM131932951

Questions Cloud

How would that be a way to avoid paying taxes : One of my business professors told me that depreciation was a huge tax giveaway by the government. How would that be a way to avoid paying taxes?
Make a journal entry to record the income tax expense : Excess tax depreciation will reverse equally over a four-year period, 20x2-20x5. Make a journal entry to record the income tax expense and liabilities for 20x1
How did the war change america : Discuss the War of 1812. Begin with a short background of the conflict and the reasons for a U.S. declaration of war.
Making capital structure decisions-the overall objective : All of the below are goals of working capital management except: In making Capital Structure decisions, the overall objective is to:
What is next year dividend payment : Allen, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of four.
Find the percentile corresponding : Find the percentile corresponding to p=52% of tire lifetimes.
Discuss about the risk identification : The process or standard operating procedure for the project is in itself a popular method used by most companies.
Estimate the number of newborns : Estimate the number of newborns who weighed between 1492 grams and 4976 grams. Write only a number as your answer. Round your answer to the nearest whole number
Prepare journal entry to record impairment : Presented below is information related to equipment owned by Finley Co. at 12/31/12. Prepare journal entry to record impairment at 12/31/12

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the effective financing rate

Maloney Manufacturing Corporation obtains a one-year loan of 2,000,000 Sudanese dinar at an interest rate of 6 percent. At the time the loan is extended, the spot rate of the dinar is $.005

  What would be the likelihood that small and large banks

What would be the likelihood that small and large banks could meet these requirements with equal ease? Would this rule change effect banking industry consolidations?#question..

  What is the rate of interest on the money

What is the rate of interest on the money that you lend in a). Give this rate per annum with continuous compounding.

  Percentage change in the price of bond dave

If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? Enter the answer with 4 decimals (e.g. 0.0123).

  What price should be set under full cost pricing

Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $40,000, annual overhead allocation = $10,000, variable cost per test = $8, and expected volume = 10,000 tests. What price should be ..

  What are special allocations

What are special allocations?- What causes the after-tax IRR (ATIRRe) for the general partner to differ from that of the limited partner?

  You purchase machinery for 23958 that generates cash flow

you purchase machinery for 23958 that generates cash flow of 6000 for five years. what is the internal rate of return

  SMERF groups complement the business travel market

How do SMERF groups complement the business travel market?

  What is the effective rate of annual interest

An account earns 5% the first year, 7% the next 3 years, 8% the next 4 years and loses 3% each of the next 2 years.

  What is happening to size of risk premium paid by investors

You have noticed that last year,private equity gourps were buying public companies at big premium ,what is the implication of this in term of changes in investor risk aversion, if any? what is happening to the size of risk premium paid by investor..

  Formula for the fcf calculation

Can you full explain and use this formula for the FCF calculation: FCF=[ (Revenue-Op Ex -D&A)*(1-tc) +D&A -Cap Exp -Add WC

  What is a restricted security why does this designation matr

What is a restricted security? Why does this designation matter? What types of buyers must the owner of restricted securities find?

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