What is the intrinsic value of bergman corp

Assignment Help Finance Basics
Reference no: EM132406984

Bergman Corp. has paid an annual dividend of $2.00 per share over the past seven years, including the last payment this month. Investors expect a brighter future for Bergman and now expect Bergman's dividend payout to be $2.10 for the end of the year and for the foreseeable future.

If the opportunity cost of capital is 12%, what is the intrinsic value of Bergman Corp.'s common stock?

What happens to the intrinsic price of the stock if the market interest rate falls?

Reference no: EM132406984

Questions Cloud

What is the total annual cash flow of the first year : What is the total annual cash flow of the first year of this project? Round to the nearest penny. Do not include a dollar sign in your answer.
What is the value of the swap to the financial institution : The 3-month LIBOR rate one month ago was 11.8% (with quarterly compounding). What is the value of the swap to the financial institution?
Current market price of mondglobe ordinary shares : (i) The current market price of Mondglobe's ordinary shares is 360 pence. (ii) The annual volatility (variance) of Mondglobe's shares for the last year was 169
How much tax deduction will he receive for the clothes : Does Toms reporting $4,900 violate tax law and/or ethical standards? Do you think the IRS has reason to be suspicious of contributions that fall just below ?
What is the intrinsic value of bergman corp : If the opportunity cost of capital is 12%, what is the intrinsic value of Bergman Corp.'s common stock?
What is its sustainable growth rate : A company has a gross profit margin of 40%, a net profit margin of 10%, dividend payout ratio of 40%, asset turnover is 1.5, financial leverage is 2.0
What is the ratio of assets to total liabilities : Using the same credit standards that BWLC applied to Beacon, does it appear that Nocturnal meets Beacon's standards for trade credit?
Which prize would you rather receive assuming it is taxable : What is your prize worth today assuming a 2% interest rate? Which prize would you rather receive assuming it is taxable at a 55% tax rate?
Record each transaction using the allowance method : At the beginning of 2021, Brad's Heating & Air (BHA) has a balance of $24,900 in accounts receivable. Because BHA is a privately owned company.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is definition of a capital asset and give examples

Compare and contrast the tax treatment of dividend-paying stocks and growth stocks. What is the definition of a capital asset? Give three examples of capital assets.

  What would be the weight used for equity in the computation

OMG Inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding and 6.000 bonds. Suppose the common shares.

  There is a selling cost of 330 what is the after-tax cost

a firm is paying an annual dividend of 3.36 for its preferred stock which is selling for 62.70. there is a selling

  Calculate return on capital employed and net present value

Calculate, for each project, the return on capital employed (ROCE), net present value (NPV), internal rate of return (IRR) and payback period. State which project, if any, you would recommend. Give your reasons.

  Walked briskly into the large building complex

Zippy Quick, in his bright suit and straw hat, walked briskly into the large building complex to see the superintendent (Super) about her heating, ventilating, and air conditioning (HVAC) equipment. Zippy said "How'd you like to hear my scheme fo..

  Standard normal curve

The area under the standard normal curve that lies to the left of -1.39 is 0.0823. Without consulting a the table giving areas under the standard normal curve, determine the area under the standard normal curve that lies to the right of 1.39.

  What are the implications of your findings

Find some figures to describe this growth. Now forecast the future demand for electricity. How accurate are your results? What other factors should be taken into account? What are the implications of your findings?

  Company stability and assets more important

How might the size of a company affect obtaining R&D funding from the following sources: venture capital, internal cash flow, public equity market

  What is the break-even probability of collection

On each nondelinquent sale Cast Iron receives revenues with a present value of $1, 340 and incurs costs with a present value of $1, 190.

  What was the retained profit for the year

What was the retained profit for the year? Has the company any borrowings, i.e. loans, debentures, etc.? What is the net cash inflow

  Why the disability needs for a particular individual

Explain why the disability needs for a particular individual are likely to be even greater than the needs in the case of premature death.

  Suppose that the expected variable costs of otobais

suppose that the expected variable costs of otobais project are yen33 billion a year and that fixed costs are zero. how

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