What is the price of the stock today-required return

Assignment Help Financial Management

Reference no: EM131047299

A7X Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 24 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 13 percent, what is the price of the stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131047299

Questions Cloud

Expect based on your estimate of the dividend growth rate : In mid-2015, Coca-Cola Company (KO) had a share price of $39. Its dividend was $1.00 per year, and you expect Coca-Cola to raise this dividend by approximately 7% per year in perpetuity.If Coca-Cola’s equity cost of capital is 8%, what share price wo..

Carrying cost and ordering cost : Post Card Depot, an large retailer of post cards, orders 5,163,150 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 21 times over the next year. Post Card Depot receives the same number of post cards each time it..

What is the target stock price in one year : Fly Away, Inc., has balance sheet equity of $6.6 million. At the same time, the income statement shows net income of $798,600. The company paid dividends of $403,293 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 30, what i..

Recovery asset-calculate after-tax cash flow at disposal : Reversing Rapids Co. purchases an asset for $102238. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has ..

What is the price of the stock today-required return : A7X Corp. just paid a dividend of $2.10 per share. The dividends are expected to grow at 24 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 13 percent, what is the price of the..

What is annual carrying costs of post card inventory : Post Card Depot, an large retailer of post cards, orders 6,509,060 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 6 times over the next year. Post Card Depot receives the same number of post cards each time it ..

Stock has an annual return mean and standard deviation : Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 10.5 percent and 45 percent, respectively. Woodpecker, Inc., stock has an annual return mean and standard deviati..

Which toy should be promoted during upcoming year : The Fuller Toy Company has been a family run business for the last 25 years. It is well recognized in the state of Michigan for selling educational related toys specifically for children, ages 4 through 8. Colleen, Kasey, Elvira June, Market Experts ..

User Account

All Pages