What is the current share price

Assignment Help Finance Basics
Reference no: EM133004628

Pastaja Inc is a company that produces fireworks. Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is. The company is planning to pay a $5 dividend in eight years from now and will increase the dividend 4% per year thereafter. The required rate of return is 11%. What is the current share price?

b) Knockem Corp common stock has a beta of 1.15. Government T-Bills are yielding 3.5% and the expected return on the market index is 11%. The company's cost of capital would be.

Reference no: EM133004628

Questions Cloud

Port aventuras information system processes : Appraise the problems that the resort is facing at the moment as highlighted by Mercedes de Pablo - Evaluate how do these problems relate to Port Aventuras
Calculate the price of the callable bond : GoGoGUCity Inc. plans to issue a perpetual callable bond that pays 10.24% annual coupons. The current interest rate is 8%. Two years later, there is 28% probabi
What the means that the jones ltd : Jones Ltd has a debt-to-equity ratio of 25% compared with the industry average of 20%. What This means that the Jones Ltd?
What is the annual cost of goods sold : Assume a firm's inventory level of $15,000 represents 40 day's sales. What is the annual cost of goods sold
What is the current share price : Pastaja Inc is a company that produces fireworks. Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is.
How can a voluntary reduction in dividend lead : Your company has decided to distribute all profits in dividends.
What is the payback period of this? project : Your cost of capital is 11.1% and your? company's preferred payback period is three years or less. What is the payback period of this? project
What is the most used liquidity ratio that can be used : Mimosa Ltd expects sales revenue of R20 000. What is the most used liquidity ratio that can be used to measure the proximity of cash position of a business?
What is the value of the stocka : Egypt company paid now $3.25 stock dividend. The dividend grows at 4% per year. if the required rate of return is 9% What is the value of the stocka

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the following is a primary market transaction

Which of the following is a primary market transaction?

  Determining the value of the stock

The required return on the stock is 14.96%. What is the value of the stock

  How it has attempted to make changes

Discuss one of the models and how it has attempted to make changes. Is it even possible to move away from the adversarial model? Explain why or why not.

  Capital than is the npv of a short term project

Which a high percentage of its cash flows are expected in the distant futures,is more sensitive to changes in the cost of capital than is the NPV of a short -te

  Find out the expected return of portfolio

Find out the expected return of your portfolio according to the CAPM.

  How does the deposit-loan rate spread in the eurodollar

How does the deposit-loan rate spread in the Eurodollar market compare with the deposit-loan rate spread in the domestic U.S. banking system? Why?

  Defined pension recipients

Due to the considerable age of the defined pension recipients, you don't expect to maintain this portfolio for much longer.

  What is the price/earnings ratio of the merged firm

If Maytag accounts for 60 percent of the earnings of the merged firm, and if there are no synergies between the two merged firms, what is the price/earnings ratio of the merged firm?

  Scrap iron and steel to turkey and other countries

The United States exports a substantial amount of scrap iron and steel to Turkey, China, Canada, and other countries. - Why do some U.S. users of scrap iron and steel support a prohibition on these exports?

  Compute the npv of this expansion project

The cost of capital for the project is 14%. Using a spot exchange rate of $1.25/ as the forecast FX rate for the euro for the term of the project, compute the NPV of this expansion project.

  Find invest in the risk free asset

You want your portfolio beta to be 1.1. How much should you invest in the risk free asset?

  Cost of capital to evaluate all projects

Suppose Acme Industries correctly estimates its WACC at a given point in time and then uses that same cost of capital to evaluate all projects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd