What is the irr for keeping the stock

Assignment Help Microeconomics
Reference no: EM132162739

Question: I purchased stock in Metal Stampings at $50 per share 2 years ago. The stock is now selling for $70 per share. Metal Stampings has paid annual dividends of $3 per year for the last 10 years and seems likely to continue doing so. I just received this year's dividend payment. If I expect the stock to be worth $90 per share in 3 years, what is the IRR for keeping the stock? Should I keep or sell the stock if my interest rate is 15%?

Reference no: EM132162739

Questions Cloud

Discuss the risks and rewards of an arbitrage strategy : Discuss the risks and rewards of an "Arbitrage" strategy, illustrated by examples of THREE multinational companies of your choice.
Actual cost of treatment and the increase in prevalence : Find the Expected Value Cost as the product of the actual cost of treatment and the increase in prevalence.
Create an organization chart and recruitment plan : Create a recruiting plan by utilizing at least two of the sources of employees. Also, explain the rationale of your chosen sources of recruitment.
What is the marginal rate of technical substitution : What is the marginal rate of technical substitution? What combination of L and K allow the firm to produce 1000 units of Q at the lowest possible cost?
What is the irr for keeping the stock : I purchased stock in Metal Stampings at $50 per share 2 years ago. The stock is now selling for $70 per share. Metal Stampings has paid annual dividends.
Calculate the real interest rate : Calculate the real interest rate over the past 24 months using the 30 year Treasury bond rate as the nominal interest rate
What is the irr for subscribing : The Engineering Economist is a quarterly journal that costs $20 for 1 year, $38 for 2 years, or $56 for 3 years. What is the IRR for subscribing for 2 years.
What is my expected irr for the year : A 10-year, $10,000 bond was issued at a nominal interest rate of 8% compounded semiannually. Last year, I bought it for $8580, just after the previous owner.
What are the competitive advantages of li-ning : What are the competitive advantages of Li-Ning - suggest a suitable market segment that Li-Ning should position in and the brand image that Li-Ning

Reviews

Write a Review

Microeconomics Questions & Answers

  What is an opportunity cost how does the idea relate to the

what is an opportunity cost? how does the idea relate to the definition of economics? which of the following decisions

  Develop a forecast model for sales

Develop a forecast model for sales through operating income. Create the forecast in Excel. In a Word document, describe the set of assumptions (ratios) you used, and explain how you justify them.

  Why is overstatement of inflation statistics a problem

Why is the understatement of unemployment statistics a problem? Why is overstatement of inflation statistics a problem?

  Draw an initial set of ad and as curves

Look under "Economy" or "International" in the First Section of the newspaper. Draw an initial set of AD and AS curves and then determine which curve will be affected and in which direction it will shift.What do you predict will happen to the pric..

  Simple money multiplier

Assuming individuals hold no currency, calculate the simple money multiplier for each of the following reserve ratios

  Online library for a recent case of antitrust investigation

Research authoritative articles using the news and the DeVry Online Library for a recent case of antitrust investigation.

  Differentiate entrepreneurship from the other resources

The one element that really seems to differentiate entrepreneurship from the other resources is the fact that entrepreneurs shoulder the risk of failure.

  Population and individual health measures

Population and Individual Health Measures and Healthcare Costs in the United States" - compare the magnitude of healthcare costs in the United States to that of other developed countries.

  Retirement benefits through your first year of retirement

Presume that your retirement benefits through your first year of retirement are $60,000 per year which is just enough to meet your cost of living through the first year. But, your cost of living is expected to increase at an annual rate of 5 percent ..

  Create the column in which you describe why that creditor

your company has just purchased a large piece of property and multiple creditors have a security interest in the

  Have directors been able to monitor and control the company

Evaluate the effectiveness of MSO's board of directors. Have the directors been able to monitor and control the company? Executive compensation is a method of governance mechanisms.

  What impact would the change which shifts the economys

what impact would a change that shifts an economys production possibilities curve outward have on the long run

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