User Account

All Pages

What is the intrinsic value of a share of xyrong stock if

Assignment Help Finance Basics
Reference no: EM13573446

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%,and the stock of Xyrong Corporation has a beta coefficient of 1.2. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $10 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 20%per year on all reinvested earnings forever.

a. What is the intrinsic value of a share of Xyrong stock?

b. If the market price of a share is currently $100, and you expect the market price to be equal to the intrinsic value 1 year from now, what is your expected 1-year holding-period return on Xyrong stock?

Reference no: EM13573446

Questions Cloud

A financial analyst at dawn chemical notes that the firms : a financial analyst at dawn chemical notes that the firms total interest payments this year were 10 million while
What is your estimate of deqss intrinsic value per share : the digital electronic quotation system deqs corporation pays no cash dividends currently and is not expected to for
On may 1 company reacquired 2000 shares of its own 2 par : on may 1 company reacquired 2000 shares of its own 2 par value stock for 100000 cash. on june 30 800 of the treasury
Look at the female figures that are prominent in the : look at the female figures that are prominent in the paintings of such masters as titian. the way they were depicted
What is the intrinsic value of a share of xyrong stock if : the risk-free rate of return is 8 the expected rate of return on the market portfolio is 15and the stock of xyrong
Fixed costs are 600000 and the variable costs are 75 of : fixed costs are 600000 and the variable costs are 75 of the unit selling price. what is the break-even point in
What is the intrinsic value of a share of xyrong stock if : the risk-free rate of return is 8 the expected rate of return on the market portfolio is 15and the stock of xyrong
Prepare the entries in journal form necessary to record the : prepare the entries in journal form necessary to record the stock transactions for corporation. these transactions
Fixed costs are 600000 and the variable costs are 75 of : fixed costs are 600000 and the variable costs are 75 of the unit selling price. what is the break-even point in

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money 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!

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