Solution-What is the expected dividend in four years

What is the expected dividend in four years

Assignment Help Business Management

Reference no: EM132908252

Walmart has just paid an annual dividend of $3.46. Dividends are expected to grow by 7% for the next 4 years, and then grow by 5% thereafter. Walmart has a required return of 6%. (Note the wording of this problem. Typically, when a problem says "expected to grow for the next X years", they mean that the the cashflow will grow constantly up to the end of year X, then the cashflow at year X will grow at some other rate in years X+1, X+2 etc.)

Part 1

What is the expected dividend in four years?

Part 2

What is the terminal value in four years (P4)?

Part 3

What is the value of the stock now?

Reference no: EM132908252

Questions Cloud

Provide an acute care clinical question in the picot : Provide an acute care clinical question in the PICO(T) format for your nursing practice problem. Nursing practice problem problems should not be used

Calculate the theoretical value of the stock today : The Lex Corporation issued a new series of bonds on January 1, 2000. These bonds were sold at par, have a 12 percent coupon and mature in 30 years, on December

Biometric authentication : Biometric authentication has become much more popular of the last few years. What are some of the advances in this space that are worth discussing?

How ebp might impact quadruple aim in healthcare : Consider the impact that EBP may have on factors impacting these quadruple aim elements, such as preventable medical errors or healthcare delivery.

What is the expected dividend in four years : Walmart has just paid an annual dividend of $3.46. Dividends are expected to grow by 7% for the next 4 years, and then grow by 5% thereafter.

Explain the payback period model : Explain the payback period model and its two significant weaknesses.

Should government bailout fiscally stressed corporations : Should government bailout fiscally stressed corporations? Why, or Why not?

Compute the company break-even point in unit sales : A woven basket whose selling price is $54, and variable cost is $45 per unit. Compute the company break-even point in unit sales

About telecommunications and networking : Write what you learned about Telecommunications and Networking. Identify 5-10 software requirements listed in the software requirements specification document?

User Account

All Pages

What is the expected dividend in four years

Reference no: EM132908252

Reference no: EM132908252

Questions Cloud

Reviews

Write a Review

Business Management Questions & Answers

Describe how uber is a big data firm

How concept of intangible benefit is used to increase profit

Present value of a retained customer contribution margin

Differences between public and private organizations

Describe target customer value proposition

Different mindsets towards the meaning of success

Explain personnel plan-hrm plan remain consistent and static

Globalization and localization

Define any two elements of the organizing function

Domestic firms have internationalized

Contributions human resource management

Transforming the desktop with web top software applications

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT