What is the price of the stock

Assignment Help Financial Accounting
Reference no: EM132949648

Question - A stock has a beta of 1.2, the riskless rate is 0.04 and the market premium is 0.6. The stock will return a constant $2 as dividend in perpetuity. What is the price of the stock?

Reference no: EM132949648

Questions Cloud

Write a project plan for your project : Write a two-page project plan for your project. For example, if you chose the creation of a website for a company, some of the tasks involved in your project
How much is the legal capital of the corporation : The call date of all subscription receivable as of date is within 3 months. How much is the legal capital of the corporation
What is the total amount of manufacturing costs : Using the weighted-average method, what is the total amount of manufacturing costs assigned to the 8,000 units in the ending Work in Process
How much will a stockholders equity change : Strauss only debt is 2,070,000 to a bank. How much will a stockholders' equity change when Strauss borrows 300,000 to purchase equipment
What is the price of the stock : A stock has a beta of 1.2, the riskless rate is 0.04 and the market premium is 0.6. What is the price of the stock
Make the appropriate adjustments to the statement : Using the columns provided on the income statement and balance sheet for Big Blue Rental Corp., make the appropriate adjustments/corrections to the statements
What is the NPV of this investment : A company is considering an investment that will cost $844,000 and have a useful life of 7 years. What is the NPV of this investment
What is the value of the October finished goods inventory : They sold 11,000 units for $90 each during the month, and produced 8,800 units. What is the value of the October finished goods inventory
Compute the payback period on the oven and equipment : Compute the payback period on the oven and equipment. If Billy purchases any equipment with less than a 4-year payback, will he purchase this equipment

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the preclosing trial balance for the mexico city

Prepare the preclosing trial balance for the Mexico City subsidiary as of December 31, 2019, in U.S. dollars, the subsidiary's functional currency.

  Prepare general journal entry to record estimated vacation

Blackstock Company has a weekly payroll of $18,375 , Prepare a general journal entry to record the estimated vacation pay resulting from the weekly payroll.

  Increased by the municipal bond revenue

During fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue?

  Log transformation when points do not seem to follow a

log transformation when points do not seem to follow a straight line.speculate what you think we might have to do for

  What is meant by dividend policy

What is meant by dividend policy? Do you think that is it important for a firm to have a dividend policy? Briefly explain the various factor

  Which an amount deducted from the catalog price for an item

Which an amount deducted from the catalog price for an item of merchandise is called? purchases discount. / customer discount

  How much cash is budgeted to be paid in february

The cash balance on February 1st was $20,000. Zeppelin's goal is to maintain at least a $20,000 cash balance. Zeppelin can borrow cash in increments of $1,000. How much cash is budgeted to be paid in February for operating costs?

  What are the most common operating expenses

What are the most common operating expenses? Show your understanding of why they are important for the company's operations and performance.

  Develop personality traits comprised of four virtues

If you could develop personality traits comprised of four virtues, what virtues would you select? What should the auditor do, if anything?

  Raw materials in making one gallon of finished product

Tang Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price—net purchase price $3.02 per pound, freight-in $0.61 per pound, and receiving and handling $0.42 per pound. (2) Quantity—required..

  Calculate depreciation for the years ending

Calculate depreciation for the years ending 30th June 2010 to 30 June 2014 using the units of production method.

  What factors do you consider would make comparisons

Which areas of expenditure do you consider worthy of investigation for each one? What factors do you consider would make comparisons between such institutions difficult or meaningless?

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