What is the current share price

Assignment Help Financial Management
Reference no: EM13727461

LD Electronics Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the equity cost of capital is 11 percent, and the company just paid a dividend of $1.90, what is the current share price?

Reference no: EM13727461

Questions Cloud

Targeting segments and brand positioning statements : "Targeting Segments and Brand Positioning Statements" Create a brand positioning statement that addresses the benefits of why customers should use your company instead of Twitter
Patient safety culture and health care ethics : Your paper must be two to four pages in length, with one to two pages for each article, excluding title page and reference pages. Your paper must be formatted according to the guidelines as stated in the Ashford Writing Center.
Explain how the pyramids at giza were constructed : There have been many theories regarding how the pyramids at Giza were constructed. Most experts agree that they were constructed as burial monuments for pharaohs.
Analyze apple current overall marketing strategy : Analyze Apple's current overall marketing strategy. Recommend two (2) actions that Apple can take in order to improve its competitive advantage in the global marketplace
What is the current share price : LD Electronics Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the equity cost of capital is 11 percent, and the company ..
Which an organization may be susceptible : Specify two (2) legal considerations to which an organization may be susceptible if it were to implement forced ranking performance evaluation systems unfairly and inaccurately. Suggest the key corrective actions that an organization could take..
About the interest rate risk of lower-coupon bonds : Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 15 years to maturity, make semi-annual payments, and have an YTM of 6 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of ..
What is the yield to maturity of this bond : A Japanese company has a bond outstanding that sells for 87 percent of its ¥100,000 face value. The bond has a coupon rate of 4.3 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?
Current rate for four-year-maturity treasury securities : Suppose that the current one-year rate (one-year spot rate) and expected one-year Tbill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: Using the unbiased expectations theory, what is the current (long-ter..

Reviews

Write a Review

Financial Management Questions & Answers

  Businesses to initially be formed as sole proprietorships

If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

  Which of the following classifications of securities had

1 the practice of not putting all of your eggs in one basket is an illustration of .a varianceb diversificationc

  The risk-free rate of return is currently

The risk-free rate of return is currently 0.02, whereas the market risk premium is 0.05. If the beta of RKP, Inc., stock is 1.7, then what is the expected return on RKP?

  What is the operating cash flow

Your firm has net income of $259 on total sales of $1,100. Costs are $620 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

  Provide a general overview of each of the three 3

choose three 3 types of securities from any of the financial markets covered in the textbook during weeks 1 through 7.

  What is the net advantage to leasing

Delamont Transport Company (DTC) is evaluating the merits of leasing versus purchasing a truck with a 4-year life that costs $50,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 9%, and the loa..

  Wal-mart company financial analysis

Wal-Mart company Financial analysis

  What growth rate is expected for the companys stock price

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.85 next year, what growth rate is expected for the company’s stock price?

  Calculate the net present value of the proposal

Calculate the combined value of the proposed acquisition and calculate the net present value of the proposal

  A financial planning organization

May an attorney allow a financial planning organization to refer its members to him for preparation of wills and trusts and accept payment of part or all of his fee from the organization?

  Risk management attributes of a eur

What pairing of options would come closest to achieving the same risk management attributes of a EUR/USD six month forward contract

  What is the net working capital for 2012

What is the Net Working Capital for 2012 and what is it for 2011 - what is the Change in Net Working Capital (NWC)?

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