What is pharmecologys current stock price

Assignment Help Financial Management

Reference no: EM131487652

Pharmecology just paid an annual dividend of $1.55 per share. It’s a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 3.75% per year. The nominal cost of capital is 10.50%.

a. What is Pharmecology’s current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current stock price $

b. What would be Pharmecology’s current stock price using forecasted real dividends and a real discount rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current stock price $

Reference no: EM131487652

Questions Cloud

Compliance auditing involves testing and reporting : Compliance auditing involves testing and reporting on whether an organization has complied with the requirements of various laws, regulations and agreements.

Relationship between the yield to maturity-apr and ear : Define the difference between a Job Order Cost System and Process Cost System

Bonuses over the years in the form of shares in corporation : Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation.

The risk premium on spanish government bonds : What should this do to the risk premium on Spanish government bonds?

What is pharmecologys current stock price : Pharmecology just paid an annual dividend of $1.55 per share. What is Pharmecology’s current stock price?

What were arringtons total liabilities : At year-end 2016, total assets for Arrington Inc. were $1.3 million and accounts payable were $365,000. What were Arrington's total liabilities in 2016?

Perform breakeven analysis : Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same.

The company achieve without having to raise funds externally : How large of a sales increase can the company achieve without having to raise funds externally?

What does a negative interest rate mean : What does a negative interest rate mean? What is the primary difference between direct and indirect finance?

User Account

All Pages