What is the pv of the stream of dividend payments

Assignment Help Finance Basics
Reference no: EM131890916

A common stock will pay a cash dividend of $4 next year, which is expected to growth at 4% a year starting in year 5. If the discount rate is 14%, what is the PV of the stream of dividend payments?

Reference no: EM131890916

Questions Cloud

Comment on the role of business analytics : Required: Include the following items in your presentation. Comment on the role of business analytics in a growing decentralized organization.
Bonnie agrees to loan with six percent simple interest : Connie borrows her money at six percent, compounded annually. Bonnie agrees to a loan with six percent simple interest.
What is the standard deviation of these returns : A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?
What is the value in year 3 of a $680 cash flow : What is the value in year 3 of a $680 cash flow made in year 7 if interest rates are 10 percent?
What is the pv of the stream of dividend payments : If the discount rate is 14%, what is the PV of the stream of dividend payments?
Discuss the political-economic and technological trends : Evaluate and discuss the political, economic, and technological trends of the emerging market. Remember to discuss any financial actions that have been taken.
What will be the cost of the investment : what is the maximum that she should be willing to pay for each share of this stock? What will be the cost of the investment?
What arbitrage opportunities are open to investors : What arbitrage opportunities are open to investors? All rates are continuously compounded.
Earnings before interest-taxes-depreciation and amortization : You expect that the new machine will contribute EBITDA(earnings before interest, taxes,depreciation, and amortization) of $40,000 per year for the next ten year

Reviews

Write a Review

Finance Basics Questions & Answers

  Relationship between the number of units sold

A company charting its profits notices that the relationship between the number of units sold x and the profit is linear. If 150 units sold results in $2100 profit and 200 units sold results in $5800 profit. Use these two points on the graph of to..

  Cloud 9s salcloud 9 sales were 500000 during 2005 and its

cloud 9s salcloud 9 sales were 500000 during 2005 and its year-end assets were 400000. for 2006 sales are expected to

  What is the expected return of your portfolio

You have invested 30 percent of your portfolio in Jacob Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.07, 0.17, and 0.13, res..

  Original amount of the mortgage loan

A mortgage loan is repaid with annual installment payments payable at the end of each year for 30 years. Each subsequent payment is 2% higher than the previous one. The interest rate charged on the loan balance is:

  Negotiated price of the new car

You have just agreed on the final price for your new car and now you have to finance the purchase. The negotiated price of the new car

  External environment the study of all the external

the elements of the paper include the followingintroduction the selection of the productservice to a foreign

  What was the percentage increase per year in the winner

In 1895, the first a sporting event was held. The winner's prize money was $170. In 2007, the winner's check was $1,164,000.

  Determine the yield to maturity

The? market's required yield to maturity on a? comparable-risk bond is 13 percent. The current market price for the bond is $880.

  If a stock is currently trading on the market for 27 its

if a stock is currently trading on the market for 27 its price one year ago was 20 and it just paid a dividend of 1.80

  If a bonds coupon rate is lower than its yield to maturity

the following statements are true. explain why.a. if a bonds coupon rate is higher than its yield to maturity then the

  Discuss key features that distinguish long term debt issues

List and briefly discuss the key features that distinguish long-term debt issues from each other.- Define the following: term loan, balloon payment, collateral, and stock purchase warrants.

  What is the degree of combined leverage

Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry.

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