Reference no: EM13922980
You received a dividend of $6.68 this morning and are attempting to decide if you should hold onto this stock. You expect this stock to grow at 14% for 3 years. After that, you think they will grow at 13%. Given the level of risk, you need a return of 26%. How much is this stock worth?
You are considering adding stock in BAMEB Motorcycles to your portfolio. You found their Beta at 0.47, the risk free rate as proxied by 10-year US Treasuries at 0.55%, and return on the market as proxied by the S&P 500 at 12.38%. What return do you need to buy this stock?
Microsoft has a Beta of .32 and you are needing the required return. You know the risk free rate is 1.02%, and the return on the market is 6.44%. What is your required return in order to invest in this company?
What is the Coeffient of Variation of an investment given at standard deviation of 3.2%, and the following outcomes?
outcome one: probabilty .41 return 21%
outcome two: probability .21 return -10%
outcome three: probability .38 return -1%
|
What is its expected return
: Expected Return If a company's current stock price is $25.40 and it is likely to pay a $1.15 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?
|
|
Using the non-constant growth model
: Using the Non-Constant Growth Model, calculate the (intrinsic) value of a stock paying the following dividend and with the given values for the 'required rate of return' ( or 'r') and assumed constant growth rate (or 'g'). The non-constant growth per..
|
|
Long-term instruments is determined largely independently
: Which yield curve theory is based on the premises that financial instruments of different terms are not substitutable and therefore the supply and demand in the markets for short-term and long-term instruments is determined largely independently?
|
|
Discuss the significance of informal communication
: Describe the functions of communication. Discuss the significance of informal communication and specifically the impact of the "grapevine" on culture, transparency, and sharing of information. Provide your insights on the process of feedback and gett..
|
|
What is the coeffient of variation of an investment
: You received a dividend of $6.68 this morning and are attempting to decide if you should hold onto this stock. You expect this stock to grow at 14% for 3 years. After that, you think they will grow at 13%. Given the level of risk, you need a return o..
|
|
Capital budgeting analysis due to the effects of inflation
: Which one of the following categories would be least likely to require annual adjustments in a capital budgeting analysis due to the effects of inflation?
|
|
Got too much invested in that project to pull out now
: The statement "We've got too much invested in that project to pull out now" possibly illustrates the need to:
|
|
Costs to financial distress-no operating effects to leverage
: Calculate the value of leverage for Cruise Company and Kidman Company, whose economic balance sheets are shown. Assume the marginal corporate tax rate is 35%, the marginal tax rate on personal income derived from equity is 20%, and the marginal tax r..
|
|
Value a constant growth stock financial analysts forecast
: Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 14.00 percent. Their recent dividend was $2.43. What is the value of their stock when the required rate of return is 16.00 percent?
|