What is the intrinsic value of abc stock

Assignment Help Finance Basics
Reference no: EM132402944

StoreAge Inc. recently paid its annual dividend of $3, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.28. The current risk-free rate is 2.6% and the market return is 9.6%. Assuming that CAPM holds, what is the intrinsic value of this stock?

Group of answer choices

$85.76

$79.43

$76.57

$75.75

$75.43

Reference no: EM132402944

Questions Cloud

Determine the price of the bond that pays coupons annually : Suppose that, several years ago, the Canadian government issued three very similar bonds; each has a $1,000 face value and a 8-percent coupon
Describe a working model of the insurance cycle : Describe a working model of the insurance cycle and the steps to manage the insurance cycle.
What is the firm cost of preferred stock financing : The firm's marginal tax rate is 35 percent. What is the firm's cost of preferred stock financing?
Cost of capital using mortgage bonds and internal equity : What is the cost of capital using mortgage bonds and internal equity?
What is the intrinsic value of abc stock : The current risk-free rate is 2.6% and the market return is 9.6%. Assuming that CAPM holds, what is the intrinsic value of this stock?
What is the intrinsic value of stock : The current risk-free rate is 2.3% and the market return is 10.1%. Assuming that CAPM holds, what is the intrinsic value of this stock?
How much capital did alpha company raise : The IPO price was $20 per share. The stock began trading at $26 per share, and closed at $24 per share.
Cash conversion cycle : Parramore Corp has $20 million of sales, $3 million of inventories, $2 million of receivables, and $1 million of payables. Its cost of goods sold is 85% of sale
Find an approximate solution of the equation : Question 2 - Apply three iterations of Newton's method to find an approximate solution of the equation

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial planning or financial analysis areas

1. Identify two (2) theories from the financial planning or financial analysis areas (based upon your concentration). 2. Explain, and analyze these theories.

  Calculate the expected rate of return for each currency

Comparing rates of return. Please calculate the expected rate of return for each currency from the standpoint of a US dollar investor.

  Discuss the economic order quality model

ABC Company sells 3, 622 chairs a year at an average price per chair of $179. The carrying cost per unit is $59.14. The company orders 596 chairs at a time.

  What is the future value of an ordinary annuity

What is the future value of an ordinary annuity if you deposit $1,500 per year for the next 5 years into an account that earns an interest rate of 5 percent annually?

  Calculating cost of equity

If stock sells for $39.00 per share, what is your best estimate of the company's cost of equity?

  What did you find surprising about credit reports

What did you find surprising about credit reports? What type of information is included on your credit report? The type of information that is included on my credit report is my name , current and previous address, and work history.

  Describe your view on this statement

U.S. President George W. Bush stated that while tougher laws might help, "ultimately, the ethics of American business depends on the conscience of America's business leaders." Describe your view on this statement.

  Zero-coupon bond

If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later if interest rates have remained stable?

  Write the claim as a mathematical statement

For the statement below, write the claim as a mathematical statement. State the null and alternative hypotheses and identify which represents the claim.

  The short run aggregate supply curve

Explain how Firms and workers reduce their expectations of future inflation affects the short-run aggregate supply curve.

  How many shares would be outstanding

If the face value is $0.05 per share, how many shares each investor, including yourself, would receive? How many shares would be outstanding?

  Flychucker corporation is evaluating an extra dividend

regular dividends- the balance sheet for levy corp is shown here in market value terms.there are 8000 shares of stock

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