What is the intrinsic value of this share

Assignment Help Financial Management
Reference no: EM131624005

A company has declared a dividend of Dh. 3..00 receivable at the end of the current year. The earning of the company are growing at 12%.

(i) What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.

(ii) What is would be the investors holding period gain if the investor purchases the share from the market now and sells it after 1 year receiving the dividend.

(iii) What is the dividend yield of the share?

Reference no: EM131624005

Questions Cloud

Computing the cost of preferred? stock : In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion.
Find the cost of this annuity : Find the cost of this annuity if the rate of interest is 12% per annum.
How can each be used appropriately : When can each use be incorporated? How can each be used appropriately? What tools are available to ensure that each use is done correctly?
Prepare a detailed multi-step income statement : Prepare a detailed multi-step income statement with a detailed explanation of many words. Assume a 25% tax rate
What is the intrinsic value of this share : What is the intrinsic value of this share? the required rate of return or cost of equity capital is 15%.
Calculate the price of one share of the foreign stock : In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$).
The united states due to the use of two-tier wages : To what extent is the renewed job growth in the automobile industry in the United States due to the use of two-tier wages?
Write essay on rhetorical analysis : Analyze and discuss an article about a first amendment right. Rather than draw conclusions about the case
What is his marginal tax rate on this income : If Chuck earns an additional $63,750 of taxable income, what is his marginal tax rate on this income?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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