What is the current price of stock

Assignment Help Financial Management

Reference no: EM131528539

Suppose that a stock had a beta of 2.7. The market risk premium is 7.6% and the risk-free rate is 2.6%, The last dividend was $2.70 a share and the dividend is expected to grow at 5% indefinitely. What is the current price of the stock?

Assuming the following information: The company has a target Debt/Total Asset ratio of 20%. Their cost of debt is 5% before taxes and the tax rate is 25%. What is the WACC (weighted-average cost of capital)?

Reference no: EM131528539

Questions Cloud

Find the dollar-weighted rate of return on this investment : Find the dollar-weighted rate of return on this investment. Find the time-weighted rate of return on this investment.

Position in the premium end of the canadian payment market : How can AMEX Canada sustain its position in the premium end of the Canadian payment market?

What is the company after tax cost of debt : IF ABC's tax rate is 30% what is the company's after tax cost of debt?

State the positions you would take to arbitrage : State the positions you would take to arbitrage and show the cash flows from the positions if futures price = spot price = 2257 at expiratio

What is the current price of stock : Suppose that a stock had a beta of 2.7. The market risk premium is 7.6% and the risk-free rate is 2.6%, What is the current price of the stock?

Investment project requires an initial investment : A twelve-year investment project requires an initial investment of $200,000 at inception and maintenance expenses at the beginning of each year.

The process of developing cash transfer rules for the firm : Scott, the treasury manager of Weiland Inc., is in the process of developing cash transfer rules for the firm.

How a firms investment policy can affect its WACC : The Horizon Corp. has 40 million shares of common stock with a current market price of $14.00 per share. how a firm’s investment policy can affect its WACC.

Process of estimating expected future cash flows of project : The process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements is referred to as.

User Account

All Pages