What is the expected rate of return for stock

Assignment Help Finance Basics
Reference no: EM132467136

  1. Blueberry Co. has a stock that has a current price of $48.53. A year from now, the stock is expected to pay a dividend of $1.35 and the price will be $52.03. What is the expected rate of return for this stock? Enter your answer as a percentage. Do not include the percentage sign in your answer.
  2. A stock has a sustainable growth rate of 7.4% and a return on equity of 15.6%. What is the plowback ratio? Enter your answer as a percentage. Do not include the percentage sign in your answer.
  3. Shield Corp. expects an earnings per share of $1.53 and reinvests 35% of its earnings. Management projects a rate of return of 13% on new projects and investors expect a 7% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM132467136

Questions Cloud

What is the annual percentage rate of the loan : What is the annual percentage rate (APR) of the loan? What is the effective cost if you prepay the loan at the end of year five?
What is the initial investment in the product : What is the initial investment in the product? Remember working capital.
How research be used in criminal justicepolicy development : Discuss a gap in understanding the findings in academic, peer-reviewed criminal justice research and practitioner policy development.
What is the price-earnings ratio : A stock has a price of $26.48 and earnings per share of $3.69. What is the price-earnings ratio?
What is the expected rate of return for stock : What is the expected rate of return for this stock? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Define wacc shi import-export : Shi Import-Export's balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity.
What roles does and should the media play : What roles does and should the media play when dealing with terrorism? How do terrorists use social media? How should we deal with their use of social media?
After-tax cash flow from the sale of the equipment : The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment?
Discuss the role of ethics in public safety organizations : Briefly discuss the role of ethics in public safety organizations maintaining the trust of the communities they serve.Do you view a code of ethics

Reviews

Write a Review

Finance Basics Questions & Answers

  External environmental scan for your organization

Complete the external environmental scan for your organization. Perform an internal competitive environmental scan for your organization.

  Compute expected price of stock

Damon Enterprises' stock is currently selling for $25.00 per share. The stock's dividend is projected to increase at a constant rate of seven percent per year.

  What seems to be most important consideration in forecast

Discuss Booth's forecasting. What did you learn? What seems to be the most important consideration in preparing the forecast?

  Do you anticipate any offsetting exchange rate effects

Assume that today's spot rate is used as a forecast of the future spot rate 1 year from now. The New Zealand dollar, Mexican peso, and Singapore dollar.

  Explain the dividend discount model for stock valuation

Explain the dividend discount model for stock valuation. What will your monthly payments be? What is the effective annual rate on this loan?

  How many individuals participate in the entire study

If the researcher uses an exclusively within-subjects design, how many individuals participate in the entire study?

  Why the company should accept or not accept the project

Phone Home Inc is considering a new 4 year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated.

  Estimate the firms return on capital

On the basis of the mentioned information you as a finance manager are asked to provide the following :  Estimate the firms return on capital.  What would be the reinvestment rate of the firm?

  Million of fixed assets that were used

In millions, by how much could Baron's sales increase before it is required to increase its fixed assets?

  What is the maximum amount he should pay for the survey

Based on the survey results what is the optimal decision strategy for the dealer? What is the maximum amount he should pay for this survey? Is the the efficiency of the survey high or low? Try to explain why?

  Describing yield curve predictor

Discuss ways in which an investor can take advantage of the flat or inverted yield curve. Provide three current, specific real-world examples in your discussion.

  What is the npv of the better project

If cash inflows occur at the end of each year, and if Vanderheiden's cost of capital is 10 percent, What is the NPV of the better project?

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