What is the best estimate od the current stock price

Assignment Help Financial Management

Reference no: EM131178003

The company's last annual dividend was $1.65 per share. Its annual dividend growth rate is expected to be constant at 2.50% in perpetuity. The risk free rate of return is 1%, the expected return on the market is 7.50% and the company's beta is 0.90. What is the best estimate od the current stock price.

Reference no: EM131178003

Questions Cloud

A case study of beach petroleum limited : Impact of Reward Management on Employee Satisfaction, A Case Study of Beach Petroleum Limited, Reward is the essential element by which employees of an organization could be satisfied. For getting a view Beach Petroleum Limited has been chosen where ..

What is the annual rate of return : What is the annual rate of return for $8,000 investment if in five years it grows to $12,500. Assuming the growth occurred in 6 years and then in 8 years, recalculate the rate of return for these two scenarios.

What were the andrews corporations total assets : Midyear on July 31st, the Andrews Corporation's balance sheet reported: Total Liabilities of $73.037 million Total Common Stock of $5.080 million Cash of $8.040 million Retained Earnings of $62.690 million. What were the Andrews Corporation's total a..

What is the total value of the firm after the refinancing : The NEWT Company is located in a country where there are no taxes and there are perfect capital markets so that there are no bankruptcy costs. The corporation currently has $25 million in debt outstanding and the value of its equity is $75 million. W..

What is the best estimate od the current stock price : The company's last annual dividend was $1.65 per share. Its annual dividend growth rate is expected to be constant at 2.50% in perpetuity. The risk free rate of return is 1%, the expected return on the market is 7.50% and the company's beta is 0.90. ..

Compute your total dollar return on this investment : Suppose you bought 250 shares of stock at an initial price of $48 per share. The stock paid a dividend of $.48 per share during the following year, and the share price at the end of the year was $51. Compute your total dollar return on this investmen..

Number of taxation rate structure : There are a number of taxation rate structures in use in various countries in the world. For citizens residing in the United States, a progressive tax rate structure is applicable presently. In addition, there are many adjustments in the form of dedu..

What is the total amount you mus pay for the bond : You purchase a $1000 par value, 6% annual coupon rate bond for the price of $960 on 4/26/2016. The most recent interest payment was on 12/01/2015 and the next interest payment is scheduled for 06/01/2016. What is the total amount you mus pay for the ..

Considering expanding its wine making operations : Lakeside Winery is considering expanding its wine making operations. The expansion will require new equipment costing $649,000 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. What is the ne..

User Account

All Pages