What is the expected dividend in each of next three years

Assignment Help Financial Management

Reference no: EM132024332

Integrated Potato Chips just paid a $2.5 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year. a. What is the expected dividend in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. If the discount rate for the stock is 12%, at what price will the stock sell today? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the expected stock price 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If you buy the stock and plan to sell it 3 years from now, what are your expected cash flows in (i) year 1; (ii) year 2; (iii) year 3? (Do not round intermediate calculations. Round your answers to 2 decimal places.) e. What is the present value of the stream of payments you found in part (d)? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM132024332

Questions Cloud

What is the market value of this stock : What is the market value of this stock if the required rate of return is 14.5 percent?

What about zehnte who has ten-year horizon : What value would Dritter place on the stock and what about Zehnte who has a 10-year horizon?

Calculate the potential change to equity held networth : Calculate the potential change to equity held networth if the forecasted rate is rising.

Determine which program evaluations are most useful : As a human services administrator, you need to determine which program evaluations are most useful. Much depends on the type of organization and the nature.

What is the expected dividend in each of next three years : You expect the dividend to grow steadily at a rate of 4% per year. What is the expected dividend in each of the next 3 years?

Differences in public and private sectordismissal practices : In your own words, discuss the differences between public and private sector dismissal practices. To what extent are these practices impacted by collective.

Conditional use permit for day care center on property : You would like it to be changed to High Density Residential zoning with a conditional use permit for a day care center on the property. What should you do?

What is initial monthly payment in each of respective loans : What is the initial monthly payment in each of the respective loans? Compare the amount of interest which would be paid on the 30 year vs. the 15 year loan.

Describe the company you will be using for your project : Describe the company you will be using for your project, and provide the name and contact information for the human resource director or other manager.

User Account

All Pages