What is the market capitalization rate

Assignment Help Financial Management
Reference no: EM13809160

Company B does not slow back any earnings and is expected to produce a level dividend stream of $8 a share. If the current stock price is $65, what is the market capitalization rate?

Reference no: EM13809160

Questions Cloud

What was the real return on the stock market : What was the real return on the stock market? What was the risk premium?
A widget manufacturer currently produces : A widget manufacturer currently produces 300,000 units a year. It buys widget lids from an outside supplier at a price of $4 a lid. The plant manager believes that it would be cheaper to make these lids rather than buy them. Direct production costs a..
Earnings and dividends per share-what is current stock price : ACME Inc’s earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%, what is the current stock price? ACME Inc’s growth will stop after year 3. In year 4 ..
What is the market capitalization rate : Company B does not slow back any earnings and is expected to produce a level dividend stream of $8 a share. If the current stock price is $65, what is the market capitalization rate?
What is the expected real interest rate : The two-year interest rate is 6.5% and the expected annual inflation rate is 3%. What is the expected real interest rate?
Treasury bond-what is the present value of the bond : A 10-year U.S. Treasury bond with a face value of $10,000 pays a coupon of 6.5% every six months. The semi annually compounded interest rate is 5.0%. What is the present value of the bond?
About the interest rate : What interest rate would make it worthwhile to incur a compensating balance of $20,000 in order to get a 1 percent lower interest rate on a 1 year, pure discount loan of $275,000?
Trade credit terms-annualized cost of forgoing the discount : If a firm buys trade credit terms of 4/10, net 60 and decides to forgo the trade credit discount and pay the next day, what is the annualized cost of forgoing the discount assuming a 360 day year?

Reviews

Write a Review

Financial Management Questions & Answers

  Dhl and fedex have helped companies throughout the world

dhl and fedex have helped companies throughout the world succeed in the global economy by understanding the customers

  Financial statement analysis

Prepare income statements and vertical common-size balance sheets for both companies - Prepare ratio analyses

  Considering investing in one of two economies

You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together..

  What is a fixed budget

What is a fixed budget? When is it an appropriate means of evaluating a manager’s performance and why?

  To minimize collection float

To minimize collection float, a firm should do which of the following?

  Should a multinational firm risk overhedging

Discuss the topic-Should a multinational firm risk overhedging - creditors may prefer that the multinational firms maintain low exposure to exchange rate risk. Consequently, multinational firms that hedge their exposure to risk may be able to borro..

  Retirement-compound interest formula and annuity formula

Luis has $120,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account. Luis also plans to put $3000/quarter into the new account until h..

  Responsibility to forecast the sales

Fiat has introduced a new car in the United States called the 500. Assume that your boss has the responsibility to forecast the sales of the 500 in the United States for the year 2012. He believes that Fiat will sell 85,000 of the 500s for 2012. Supp..

  Describe the product life cycle for managing products

Describe the product life cycle as a useful tool for managing products after they have been introduced to foreign markets.

  Average cost problem

Average cost of a desktop computer must be less than or equal to$2,100. using a sample of 64 retailers reveals a mean price of $1,951, with a standard deviation of $242. does the manager proceed with using a 5 percent significant level?

  Statements regarding bond trading is incorrect

Which of the following statements regarding bond trading is INCORRECT? The long-term bonds issued by the U.S. government are called Treasury Bills.

  What is the implied forward rate six months hence

Suppose the spot price of gold is $1200 per ounce. The futures price for delivery in six months is $1208, while the futures price for delivery in one year is $1214. The interest rate on 6-month loans is 1.00percent (on an annual basis).

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