What is the market value of the company stock

Assignment Help Financial Management

Reference no: EM132066424

Burnes, Inc., is a mature firm that is growing at a constant rate of 5.65 percent per year. The last dividend that the firm paid was $1.20 per share. If dividends are expected to grow at the same rate as the firm and the required rate of return on Burnes’s stock is 11 percent, what is the market value of the company’s stock?

Reference no: EM132066424

Questions Cloud

Recent market events and the state of the economy : What’s your assessment of the sector, in light of recent market events and the state of the economy?

Consider the mean-variance analysis : Consider the “mean-variance analysis”. What is correct in the followings?

Find out the values of total risk-systematic risk of stock : Find out the values of total risk, systematic and non systematic risk of stock j in variance term.

Does the normal distribution of the returns on asset work : Does the Normal distribution of the returns on an asset work well in the volatile time (ie., when the market is uncertain) to access the riskiness of the asset?

What is the market value of the company stock : Burnes, Inc., is a mature firm that is growing at a constant rate of 5.65 percent per year. what is the market value of the company’s stock?

The implication of negative skew in return distribution : What is the implication of negative skew in a return distribution? Under what condition the arithmetic mean and the geometric mean have an equal value?

Total simple interest and the total compound interest : Calcualte the total interest earned, the total simple interest and the total compound interest.

What legal aspect of corporate debt : What legal aspect of corporate debt explains the fact that increasing your company's leverage will make your company's stock beta rise?

Calculate the expected return on stock : Use Capital Asset Pricing Model (CAPM) to calculate the expected return on a stock that has a beta of 2.5

User Account

All Pages