What is the current value of one share of this stock

Assignment Help Accounting Basics
Reference no: EM132601641

Question - Global Tek is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5 percent?

Reference no: EM132601641

Questions Cloud

Computation of cost of capital for decision making purposes : A capital budgeting technique which does not require the computation of cost of capital for decision making purposes is? Internal Rate of Return method
Explain what is international accounting standard board : Explain what is the different between International Accounting Standard Board (IASB) and Australia Accounting Standard Board (AASB)?
Find the pay back technique is especially useful during time : Find the pay back technique is especially useful during times? When the economy is growing at a steady rate coupled with minimal inflation.
Find interest coverage ratio would be : What Interest Coverage Ratio would be, Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax is Birr 16 crore
What is the current value of one share of this stock : The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock
Break-even level of ebit : Jones Corp is considering two different capital structures. It currently has 18,500 shares of stock outstanding. It is considering issuing $100,000 of debt
Analyze the performance of the company : Analyze the Performance of the Company on the basis of all of the "Cash Generating Activities"? Area of improvements for the next Financial Year.
Calculate the project-project k costs : Project K costs $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12%. Calculate the project's:
Income statement and a cash flow statement : "What is the difference between an income statement and a cash flow statement? Please also explain how each are used."

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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