What is the current value of the company stock

Assignment Help Financial Management
Reference no: EM131606153

JJ Industries will pay a regular dividend of $2.9 per share for each of the net four years. At the end of the four years, the company will also pay out a $65 per share liquidating dividend, and the company will cease operations. If the discount rate is 12 percent, what is the current value of the company's stock? (Round your answer to 2 decimal places. Omit the"$" sign in your response.

Price       $

Reference no: EM131606153

Questions Cloud

What is the divisor on your index : You construct a price-weighted index of 54 stocks. What is the divisor on your index?
Calculate the npv for both conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. Calculate the NPV for both conveyor belt systems.
What must relevant discount rate be for atlantis stock : Seafood Company stock currently sells for $56 per share. What must the relevant discount rate be for Atlantis stock?
Calculate the share price for bill bakery : Calculate the share price for Bill's Bakery if earnings grow at 4 percent forever. (
What is the current value of the company stock : JJ Industries will pay a regular dividend of $2.9 per share for each of the net four years. what is the current value of the company's stock?
What is lauryn asset beta : You are going to value Lauryn's Doll Co. using the FCF model. what is Lauryn's asset beta?
What is the value of a put option written on the stock : What is the value of a put option (to the nearest dollar) written on the stock with the same exercise price and expiration date as the call option?
Imperfect competitions in national markets : Which of the following imperfect competitions in national markets can multinational firms take advantage of?
What is the break-even quantity : What is the NPV of this alternative scheme? What is the break-even quantity? Calculate DOL based on the alternative scheme used in part a.

Reviews

Write a Review

Financial Management Questions & Answers

  What is marine oils intrinsic value of operations

What are Marine Oils’ cost of equity and weighted average cost of capital? What is Marine Oils’ intrinsic value of operations?

  What is present value of this liability

If the relevant annual rate of return is 8.5 percent, what is the present value of this liability?

  Make the challenger replacement choice

Determine the minimum resale price needed to make the challenger replacement choice now

  What was your dollar return and percent return

"FedEx Corp stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It ended last year at $106.69. If you owned 200 shares of FedEx, what was your dollar return and percent return? and why a percentage return..

  Define the terms finance and financial management

Define the terms finance and financial management. What are the major sub-areas of finance? Identify and define the three basic forms of business ownership. Describe the advantages and disadvantages of each

  Estimate of the stock current market value

Burke Tires just paid a dividend of D0 = $1.45. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 10.00%. What is th..

  How many years do these bonds have left until they mature

Shinoda Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.4 percent. The current yield on these bonds is 5.75 percent. How many years do these bonds have left until they mature?

  Compute the value of homer trucking company bonds

Compute the value of Homer's Trucking Company bonds if investors' require rate of return is 9.5%.

  Calculate the return on investment

calculate the return on investment.

  Calculate earnings per share under each of three economic

Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.

  What risk do you face and what could happen

There have been some media reports that the bank may not have enough capital to survive the next six weeks. What risk do you face and what could happen?

  What must be the one-year forward exchange rate

If the interest rate in the United Kingdom is 6 percent, the interest rate in the United States is 7 percent, the spot exchange rate is $1.75/£1, and interest rate parity holds, what must be the one-year forward exchange rate?

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