User Account

All Pages

What is the current value of one share of this stock

Assignment Help Finance Basics
Reference no: EM13268616

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 22 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $1.20 per share. What is the current value of one share of this stock if the required rate of return is 9.25 percent?

Reference no: EM13268616

Questions Cloud

How much additional equity financing required for next year : If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
What is the possible range of inputs for subtraction : Use a 74LS283N Adder chip and a 74LS86N XOR chip. Simulate the circuit in Multisim and test enough input combinations that you are sure the circuit is working properly. Make sure you test in all theranges of numbers that are possible.
What is your average accounts receivable balance : On average your firm sells $32,600 of items on credit each day. Your average inventory period is 30 days and your operating cycle is 50 days. What is your average accounts receivable balance?
Case study-criminal law : Should al-Timimi's advocacy of violence be unlawful? Why or why not? Might we have more to fear from the suppression of free speech (even speech like al-Timimi's) than from its free expression?
What is the current value of one share of this stock : The company just paid its annual dividend in the amount of $1.20 per share. What is the current value of one share of this stock if the required rate of return is 9.25 percent?
What is the amount of net capital spending : Teddy's Pillows has beginning net fixed assets of $462 and ending net fixed assets of $532. Assets valued at $310 were sold during the year. Depreciation was $24. What is the amount of net capital spending?
What is the rate of inflation : The yield to maturity on a bond is currently 8.25 percent. The real rate of return is 3.40 percent. What is the rate of inflation?
What does double taxation of corporate income mean : What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.
What is the amount of the operating cash flow : The Beach House has sales of $770,000 and a profit margin of 6 percent. The annual depreciation expense is $90,000. What is the amount of the operating cash flow if the company has no long-term debt?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the implications of this new business model

How does the business model for cloud computing differ from the traditional business model use by companies such as Microsoft? What are the implications of this new business model for Microsoft's future financial performance?

  Capital structure and stock split

Suppose you own 2000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 stock split. what will the adjusted EPS and DPS be, and what would you expect the ..

  What is the companys ledger balance

The manager notes that only the $21,000 payment of the 27th has cleared the bank. What is the company's ledger balance and available balance with its bank?

  Creating balance sheet using mark-to-market method

Applying the Mark-to-market method, what will Novi Company show on its balance sheet at the end of 2006 to reflect its investment in Troy Company?

  What will be the value of the investment in two years

You identify a bank CD that pays an interest rate of 0.0500 with the interest being paid quarterly. What will be the value of the investment in two years?

  What is the amount of the last dividend paid

Roy's Welding Supplies common stock sells for $38 a share and pays an annual dividend that increases by 3 percent annually. The market rate of return on this stock is 8.20 percent. What is the amount of the last dividend paid?

  Change in retained earnings account

The current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share,

  Maximizing firm value

After taking a closer look at numbers and doing the financial analysis, you start to think more strategically, and in a broader context, you anticipate what the CFO would ask.

  Important information about the time value

John E. Nvestor is planning his own retirement plan and needs to create a savings plan for his retirement. He wants to receive $5,000 monthly at the beginning of his retirement age of 65 years.

  Compute the depreciation value

Value of the vehicle V depreciates T Months later V=10,000(.95)^t [for 0

  What is the price of the stock today

Thirsty Cactus Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 23 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 12 percent, what is th..

  Which is better a centralized or decentralized approach

Both Berkley and Oakley are large public corporations with subsidiaries throughout the world. Berkley uses a centralized approach and makes most of the decisions for its subsidiaries. Oakley uses a decentralized approach and its subsidiaries make ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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