What is the price of the stock ten years from today

Assignment Help Financial Management
Reference no: EM131575335

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 10 years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $14.75 per share 11 years from today and will increase the dividend by 5.25 percent per year thereafter. The required return on the stock is 13.25 percent. What is the price of the stock 10 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price in 10 years $ What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price $

Reference no: EM131575335

Questions Cloud

What might be the economic costs of these impacts : What might be the economic costs of these impacts?
The annual interest payment : Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, The annual interest payment is 9 percent ($90).
Trust has been established to fund scholarship in perpetuity : A trust has been established to fund scholarships in perpetuity.
Compute current price of bonds-present yield to maturity : Compute the current price of the bonds if the present yield to maturity is
What is the price of the stock ten years from today : What is the price of the stock 10 years from today?
What is expected return for overall stock market : Expected and required rates of return Assume that the risk-free rate is 2.5% and market risk premium is 3%. What is expected return for overall stock market?
New issue of preferred stock : E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. What is the price of the stock 19 years from today?
Estimate the value of equity in barrista espresso : Estimate the value of Barrista Espresso as a firm. Estimate the value of equity in Barrista Espresso.
What is current share price : If the required return is 12 percent and the company just paid a dividend of $2.65, what is the current share price?

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