What is the present value of all the future dividends

Assignment Help Finance Basics
Reference no: EM132788312

A firm has just declared that its dividend next year will be $5.20 per share. That rate of payment will continue for an additional 4 years, after which the dividends will fall back to their usual $4.20 per share. The discount rate is 9 percent.

What is the present value of all the future dividends?

Reference no: EM132788312

Questions Cloud

What particular hardships did the new migrants face : In both essays (Curtis and Lee) what particular hardships (racism, poverty, etc.) did the new migrants face in the U.S. and how do they relate to the history.
What is john maximum recovery deduction : At the time of the conversion, the automobile had a fair market value of $9,000 and a salvage value if $1,900. What is John maximum recovery deduction for 2019.
What is the implied risk premium : If the shares pay an annual dividend of $5 on a par value of $85 and the risk-free rate is 5.5%, what is the implied risk premium?
Do think is ethical to intervene with personal relationship : Is your senior jealous? Do you think it is ethical to intervene with your personal relationship? Are you going to obey your senior? Explain your decision.
What is the present value of all the future dividends : That rate of payment will continue for an additional 4 years, after which the dividends will fall back to their usual $4.20 per share.
Analyze social changes caused by the war : Analyze the impact that WWI had on European notions of gender, and the subsequent "gender crisis" of the 1920s. Exactly how and why did the World War.
Calculate the present discounted value : Calculate the present discounted value (PDV) for a 5 years bond with RM60,000 initial payment and yearly payment stream of RM3,500.
Determine the type of business income being earned : Determine the type of business income being earned by each of the following Canadian-controlled private corporations.(ie Is it Active business income)
What is the impact of student loans : 1. Give a brief overview of the student debt in Canada with some statistics and relevant data

Reviews

Write a Review

Finance Basics Questions & Answers

  Develop a spreadsheet model and solve the problem

The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspaper advertising and radio.

  Compute optimal portfolios for investors

Suppose there are two uncorrelated risky assets A and B. Asset A has volatility 20% and return 15%. Asset B has volatility 40% and return 25%.

  What must the debt-equity ratio of the firm

The firm does not issue preferred stock. The tax rate is 35 percent. What must the debt-equity ratio of the firm be if it is to achieve its target WACC?

  What is the equity multiplier

What is the company's total asset turnover? What is the equity multiplier?

  Chair the next senior management meeting

You are relatively new to the company and have been asked to chair the next senior management meeting.

  Discuss two key assumptions of agency theory

In a corporate governance context of a widely held large corporation, principals often use incentives and monitoring to guard against the principal-agent proble

  What is a fair price for this stock if you buy it today

If you want to earn 12% on this investment, what is a fair price for this stock if you buy it today?

  Calculate marginal tax rate and taxable income

Salary $22,000.00 Corporate Bonds $2,000.00 Muni Bonds $10,000.00 Ordinary Dividends $3,000.00 Qualified Dividends $3,000.00 ST Capital Gain $150.00 LT Capital Loss $1,500.00 Independent Contractor Net Income $17,500.00.

  Estimate of the after-tax cost of debt

The noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875. The firm's tax rate is 40%.

  Tax strategies and capital budgeting

Consider what you know about global tax strategies and capital budgeting (NPV) analysis.  The current U.S. marginal corporate tax rate is 35%.

  Payoff diagram for a stock and a bond

Make a final payoff diagram for a stock and a bond.

  Discuss difference between michigans budget and state budget

discuss two differences between Michigan's budget and your state budget in terms of budget process, financial reporting, and costs analysis (fixed costs, step-fixed costs, and variable costs). Justify your response with examples.

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