What is the expected rate of return for this stock

Reference no: EM13267857

You are evaluating common stock for a firm. The current market price is $30 and the dividend at the end of the year is expected to be $1.50. Dividends and earnings are growing at 12% annual rate. What is the expected rate of return for this stock? Show the formula you would use to determine this.

Reference no: EM13267857

Questions Cloud

Which lender should johnnys pizza use : Johnny's Pizza owes $40,000 to one of its suppliers. The supplier has offered a trade discount of 2/10 net 30. Johnny's can borrow the funds from one of two lenders. Lender 1 will fund for 20 days at a cost of 400$; Lender 2 offers a discount for ..

Determine the overall gain when the amplifier is connected : The first stage is a transconductance amplifier with an input resistance of 2k ohms, an output resistance of 100k and a gm=0.002A/V. The second stage is a voltage amplifier with an input resistance of 5k, an output resistance of 18 ohms and a volt..

For what distance should the camera lens be focused : Suppose that you want to take a photograph of yourself as you look at your image in a mirror 3.1m away, For what distance should the camera lens be focused

Describe a heater that supplies heat at a constant rate : These changes are brought about by a heater that supplies heat at a constant rate of 1000 W. Sketch graphs showing a) the temperature vs. time b) the enthalpy vs. time c) Enthalpy vs. temperature for this process. Mark the salient features.

What is the expected rate of return for this stock : What is the expected rate of return for this stock? Show the formula you would use to determine this.

What is the dopant concentration on the p-type side : A pn-junction is formed in silicon by doping one side with acceptor atoms at concentration Na = 10^19 cm^(-3) and another side with donor atoms at Nd = 10^18 cm^(-3). What is the dopant concentration on the p-type side and on the n-type side

Compute the received sound frequency : A bat at rest sends out ultrasonic sound waves at 49.4kHz, What is the received sound frequency

What must their total liabilities be next year : Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be next year?

Compute the concentration of ammonium ions : A solution is prepared by dissolving 13.4 g ammonium sulfate in enough water to make 133.0 mL of stock solution. A 11.90 mL sample of this stock solution is added to 52.50 mL of water. Calculate the concentration of ammonium ions and sulfate ions ..

User Account

All Pages