User Account

All Pages

What is the intrinsic value

Assignment Help Finance Basics
Reference no: EM131132287

Portman Industries just paid a dividend of $2.16 per share. Portman expects dividends to grow by 12% over the next year. The next year, the dividend is expected to grow at a constant rate of 2.4% per year.

The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information:

What is the intrinsic value?

50.79

53.05

53.27

63.66

Reference no: EM131132287

Questions Cloud

Predicted difference between earnings of females and males : What is the predicted difference between earnings of females & males?  Is this significant? How would you test for the significance of age in the regression?  Is the quadratic function of age preferred to a linear function of age
How many workers of each type will employers hire : How many workers of each type will employers hire? If workers' abilities are not observed by employers, what is the equilibrium wage? How many workers of each type will employers hire? What is the deadweight loss due to asymmetric information?
What was the situation in france in 1830 : What was the situation in France in 1830? Who benefited from Louis Philippe'sleadership? What changes occurred as a result of the revolutions in the early 1830s?
Identify hardware and software needed to secure your network : Identify hardware and software needed to secure your choice of networks against all electronic threats. Compare Local Area Networks (LANs), Wide Area Networks (WANs), and wireless technologies.
What is the intrinsic value : The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information: What is the intrinsic value?
Balance of power established by the congress of vienna : What was the balance of power established by the Congress of Vienna? What role did France play in maintaining it? What role did Prussia and Russia play?
Would you agree with a qualified version of george''s claim : Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
What are types of crimes that are classified as white collar : Does it fit with what you know about white collar crime now? What are the types of crimes that are classified as white collar crime? How much of a factor is the media in white collar crime?
Why was he an advocate of conservatism : Who was Metternich? What was his opinion about nationalism and liberalism? Why was he an advocate of conservatism? What were some examples of his conservativebeliefs?

Reviews

Write a Review

Finance Basics Questions & Answers

  Research background-roe-ror with capm

Discuss the competitive forces in the industry including the company's relative advantages and disadvantages to its competitors and comprise a discussion on ROE as the basis for growth.

  Using marginal analysis and eva analysis

Finance questions based on  marginal analysis,  EVA analysis. Find  the current yield for Bond A.

  Both firms sell 10000 units of output at 250 per unit the

firm a has 10000 in assets entirely financed in equity.firm b also has 10000 in assets but these assets are financed by

  Morgan contractors borrowed 175 million at an apr of 102

morgan contractors borrowed 1.75 million at an apr of 10.2 percent. the loan called for a compensating balance of 12

  Question regarding the normal distribution table

If you want to find out the probability that a randomly picked student has scored 85 or above, what is the z value that you should look up on the normal distribution table? Show work

  What interest rate is the bank required by law

What interest rate is the bank required by law to report to potential borrowers?

  Discuss the factors that influence international bond

Why do you think that the article is important in understanding diversification benefits that international bonds provide?

  Explain how bond convexity influences the theoretical

question 1 a bond has a duration of 5 years and a yield to maturity of 9 percent. if the yield to maturity changes to

  What is the geometric average rate of return

Over the past 5 years, Buster's had annual returns of 5.4 percent, -19.2 percent, 21.2 percent, 14.6 percent, and -2.1 percent. What is the geometric average rate of return?

  Calculate price of the preferred stock.

The preferred stock of Ultra Corporation pays an yearly dividend of $6.30. It has a required rate of return of nine percent. Calculate the price of the preferred stock.

  What about the norminal rate

If the expected rate of inflation suddenly rises to 8.9%, what does the Fisher theory say about the real interest rate will change?

  Find out the future value of annuity

Today is Sarah's 30th birthday. Five years ago, Sarah opened brokerage account when her grandmother gave her $25,000 for her 25th birthday. Suppose that the account has earned (and will continue to earn) effective return of 12 percent a year.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd