What is the intrinsic value

Assignment Help Financial Management

Reference no: EM131361802

Suppose that Chipotle s stock paid a dividend of $1.30 last year and that the dividend is expected to remain constant in the future. Chipotle s beta is 0.55, the current risk-free rate is 2% and the market risk premium is 5%. What is the intrinsic value (current price) of Chipotle s stock?

Reference no: EM131361802

Questions Cloud

Marketing efforts change consumers : Comment the statement "Marketers don't create needs, needs preexist marketers" Can marketing efforts change consumers' needs? Can they arouse consumer needs?

Supply is considering creating a new line of mittens : Baba's Warm and Cozy Knitting Supply is considering creating a new line of mittens. The managers think that the new equipment and supply of yarn will cost $340,000. They expect to earn $60,000 the first year, $100,000 the second year, $100,000 the th..

Give the answer of muliple choice question : believed that nearly all known societies are characterized by some system of division by economic class, which results in conflict as classes compete for wealth, power, and resources.Formal organizations characterized by written rules, hierarchical..

Discuss the implementation of the new grand strategy : Discuss the implementation of the new grand strategy. What are the short term objectives required to support the new strategy? What functional tactics will support this implementation?

What is the intrinsic value : Suppose that Chipotle s stock paid a dividend of $1.30 last year and that the dividend is expected to remain constant in the future. Chipotle s beta is 0.55, the current risk-free rate is 2% and the market risk premium is 5%. What is the intrinsic va..

Psychological and sociocultural influences : Describe a decision that you may be faced with and explain the decision making model and consumer decisions model as it relates to your decision. Include any psychological and sociocultural influences that may effect the end result.

The pecking order of financing is followed by firms : The pecking order of financing is followed by firms is. Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce its WACC. Since a firm's beta coefficient it not affected by its use of financial leverag..

Power from marx’s and foucault’s points of view : Explain the arguments of Marx and Foucault. How do they differ? What are the main differences they have about the nature of POWER in society?

Design a linear-time algorithm to eliminate each vertex v : Note that removing multiple copies of an edge may create a new vertex of degree 2, which has to be removed, and that removing a vertex of degree 2 may create multiple edges, which also must be removed.

User Account

All Pages