What is the present value of the stock

Assignment Help Financial Management
Reference no: EM131495394

A stock pays dividends that are always one year apart. The stock will pay its next dividend six months from today, in the amount of $2. The dividend will go up by 7% for each of the three subsequent payments. After that, the dividend will remain constant forever. What is the present value of the stock if the effective annual interest rate is 20%?

Reference no: EM131495394

Questions Cloud

Present and future values of cash flow stream : An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, what is its future value?
Why is beta theoretically correct measure of a stock risk : Why is beta the theoretically correct measure of a stock’s risk?
What is the cash flow associated with the sale of used truck : If the Johnson Company of Problem 1 is subject to a marginal tax rate of 34%, what is the cash flow associated with the sale of the used truck?
How many years should the splitter be retained : A self-employed worker operates a firewood service. He purchased a commercial-grade wood splitter for $5800. how many years should the splitter be retained?
What is the present value of the stock : What is the present value of the stock if the effective annual interest rate is 20%?
What is the value of the fund today : He has been earning an average annual compound rate of return of 11% compounded quarterly. What is the value of the fund today?
Mezcoph is planning to put on ten week summer exercise camp : MEZCOPH is planning to put on a ten week summer exercise camp to introduce kids to the importance of exercise.
What will the price of this stock : What will the price of this stock be 4 years from today if the effective annual discount rate is 16%?
Find the monthly returns for the two stocks : Find the monthly returns for the two stocks. Find the annualized expected return for each stock.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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