What is the current price of the stock

Reference no: EM13258818

Assume a company pays $ 3 dividend every year in perpetuity. a) If investors reuire a 16 percent rate of return, what is the current price of the stock? b) how much is the PVGO ( pesent value of growth opportunity) if the expected long-run dividend growth rate is 8 percent?

Reference no: EM13258818

Questions Cloud

Determine the difference in travel time for light : On the Moon\'s surface, lunar astronauts placed a corner reflector, off which a laser beam is periodically reflected. What is the difference in travel time for light that travels only through space to the moon and back and light that travels through..

Find the magnitude of the average net force : During the landing, the force of the ground on the man points upward, while the force due to gravity points downward. The average net force acting on the man includes both of these forces.

Offer a synthesis of butane-2 and 3-diol : Provide a synthesis of butane-2,3-diol from 1 or 2 carbon alkanes. Use any reagents. Show the steps and the products formed for each step.

Discuss how monetary and fiscal policy : Discuss how monetary and fiscal policy could have been better leveraged to avoid the recession in the early 2000s. discuss how supply and demand would be affected under each of the four degrees of competition . give specific examples to support yo..

What is the current price of the stock : what is the current price of the stock? b) how much is the PVGO ( pesent value of growth opportunity) if the expected long-run dividend growth rate is 8 percent?

What is the frequency at which the gain magnitude is unity : use an ideal op amp to design an inverting integrator with an input ressistanceof 10 kilo ohm and an integration time constant of 10^-3. What is the gain magnitude and phase angle of this circuit at 10rad/sand 1rad/s.

Find a company can produce a product : You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product.

Find how high does the listener need to mount the anntena : a high power FM station of frequency 96.9 MHz has an antenna height of 1200 feet. If the signal is to be recieved 60 miles from the station, how high does the listener need to mount their anntena in this fringe area

What is the price of the bonds : Renfro Rentals has issued bonds that have a 11% coupon rate, payable semiannually. The bonds mature in 6 years, have a face value of $1,000, and a yield to maturity of 9%. What is the price of the bonds? Round your answer to the nearest cent.

User Account

All Pages