What is the intrinsic value of the stock today

Assignment Help Finance Basics
Reference no: EM132468202

Alexa Corporation has a current stock price of $20 and is expected to pay a dividend of $1 in one year. Its expected stock price in one year is $22.

If the required rate of return is 16%, what is the intrinsic value of the stock today?

Given Alexa Corporation has a current stock price of $20, what is the expected return to hold its stock for one year? ______%

Reference no: EM132468202

Questions Cloud

Design of financial innovations : What are the problems associated with the design of financial innovations? How can financial innovations be decomposed to predict potential outcomes?
What is Roberts charitable contribution deduction : Robots Inc. reports following financial data for last year gross income from sales and services 200,000 wages. What is Roberts charitable contribution deduction
Determine an intra-entity sale : Determine how An intra-entity sale took place whereby the transfer price was less than the book value of a depreciable asset. elaborate
Compute the price of the bonds-microdrive inc : The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 5%. What is the price of the bonds?
What is the intrinsic value of the stock today : Alexa Corporation has a current stock price of $20 and is expected to pay a dividend of $1 in one year. Its expected stock price in one year is $22.
What price would you expect in one year in order : The required return is 15%. What price would you expect in one year in order to justify its current price?
What will be taxable income of the estate : He has filed his brother's final return for 2017 and has the following infromation regarding Bruce's remaining estate. What will be taxable income of the estate
What will its stock price be in four years : If you expect Summit's dividend to grow by 6% per year and its required return is 11%, what is its price per share today?
Problem - Inventory Turnover : Problem - Inventory Turnover. Determine the inventory turnover for Apple and Mattel. Would you expect Mattel's inventory turnover to higher or lower than Apple

Reviews

Write a Review

Finance Basics Questions & Answers

  What is jose expected profit from the soft drink machine

Assume 250 working days in a year and ignore taxes and the time value of money. What is Jose's expected profit from the soft drink machine?

  Write a sample proposal promoting a product

Using Direct Marketing strategy, write a sample PROPOSAL promoting a product and/or services of your own fictitious (imaginary) company.

  Cash management approach

A corporation uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000.

  Explain financial account captures international fund flows

This question is from financial basics and it is explain The Financial Account captures international fund.

  Leverage ratios-asset utilization ratios-liquidity ratios

List and define one ratio from each of the following categories: leverage ratios, asset utilization ratios, liquidity ratios, and profitability ratios.

  What is the amount of depreciation expense for the third yea

Sun Lee's Furniture just purchased some fixed assets classified as 5-year property for Modified Accelerated Cost Recovery System (MACRS). The assets cost $24,000. What is the amount of depreciation expense for the third year?

  Integrity financial statements

The Sarbanes-Oxley Act was signed into law in July 2002 & was proposed to get better the accuracy of publicly held companies' financial statements. How would this Act affect:

  Predict the future of the currency including the impact

Based on your research of the current EURO currency crisis, predict the future of the currency, including the impact to financial investment and risk within the EURO zone for financial institutions.

  What is the addition to retained earnings

Pharrell, Inc., has sales of $589,000, costs of $269,000, depreciation expense of $69,000, interest expense of $36,000, and a tax rate of 35 percent.

  Calculate earnings per share

Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.

  Construct the cash flow statement for the year 2014

Construct the cash flow statement for the year 2014 - Compute the financial ratios for the two years 2013, 2014 Total Asset Turnover

  Behaving rationally on the decision to exercise the option

Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.56 sometime during the next 5 months.

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