What is the most that you would pay for the stock

Assignment Help Finance Basics
Reference no: EM132288992

You are contemplating the purchase of a stock that you will hold for two years. You will receive $0.81 per year in dividends, and then you expect to sell it for $24. If the required rate of return is 9%, what is the most that you would pay for the stock?

Reference no: EM132288992

Questions Cloud

Write a one page paper about what you think you can do : Write a one page paper about what you think you can do to stop the ancient thriving practice of killing baby girls.
How much will you have 10 years later : Beginning today, you will be investing $5,000 per year for the next 10 years in an account earning 8% quarterly. How much will you have 10 years later?
What is beta of stock : A stock has an expected return of 12.4 percent, the risk-free rate is 6.5 percent, and the market, risk premium is 10 percent. What must the beta of this stock
What is the economic basis for our current healthcare system : What is the economic basis for our current healthcare system, including organization and access, as it stands now?
What is the most that you would pay for the stock : If the required rate of return is 9%, what is the most that you would pay for the stock?
Prepare for yourself an amortization schedule for bond issue : Prepare for yourself an amortization Schedule for this bond issue. From that schedule - Provide the below Journal Entries: (show your calculations)
How much should the investor pay for the stock : The stock will pay a $1.75 dividend and should sell for $42. If the required rate of return is 12%, how much should the investor pay for the stock?
Would you make the? investment : Would you make the? investment? Why or why? not? ?(Select the best choice? below.)
What is Alpha Company general journal entries : What is Alpha Company's general journal entries to record the purchase and payment for inventory purchased from its Japanese vendor

Reviews

Write a Review

Finance Basics Questions & Answers

  What is your prediction for the price of picc tomorrow

Assume that you know nothing about PICC other than the information contained in the prospectus. Based on your knowledge of finance, what is your prediction for the price of PICC tomorrow? Provide a short explanation of why you think this will occu..

  What types of projects will this company over invest

A corporation's policy manual states: "Our company's policy is to use 12%, which is our cost of capital, as the discount rate for NPV calculations on all projects considered for investment." What is wrong with this policy? In what types of projects w..

  Wisconsin snowmobile corp is considering a switch to level

wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level

  What amount should pound report as goodwill

On April 30, 2014, Pound Corp. purchased for cash all 200,000 shares of the outstanding common stock of Shake Corp. for $20 per share.

  What is the initial net cash outlay

The purchase price of the new machine is $200,000. What is the initial net cash outlay if we move forward and buy the new machine

  Calculate profitability index and internal rate of return

Calculate the net present value. Calculate the profitability index. Calculate the internal rate of return. Should this project be accepted? Why or why not?

  Purpose of underwriting in the commercial mortgage industry

What is the major purpose of underwriting in the commercial mortgage industry? What is the relationship between underwriting and the market for commercial.

  The effect of an appreciation in the home currency

A domestic firm, Home Company, is evaluating the effect of an appreciation in the home currency on the firm's economic exposure. In each of the following categories of economic exposure, indicate whether the domestic currency appreciation is likel..

  Calculation of their respective roa and roe

Show your calculation of their respective ROA and ROE; footnote which financial statement the numbers are picked from. For example, assets (balance sheet).

  Describe the evolution of the virtual organization

Describe the evolution of the virtual organization. What are the pros and cons associated with this design? Provide examples of three technological devices/concepts that have had the greatest impact on virtual organizations. Please include ref..

  Securitization of assets offers to lenders

1. Give examples of advantages and risks that securitization of assets offers to lenders.

  Calculate the net present value

An investment of $83 generates after-tax cash flows of $42.00 in Year 1, $64.00 in Year 2, Calculate the net present value

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