What is the required rate of return on stock

Assignment Help Financial Management
Reference no: EM131966820

The common stock of ABC Industries is valued at $39.4 a share. The company increases their dividend by 4.3 percent annually and expects their next dividend to be $0.3. What is the required rate of return on this stock? That is, solve for r.

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Reference no: EM131966820

Questions Cloud

How social media plays into intent and the actual message : Describe how social media plays into the intent and the actual message. What's different between the two you chose? What made the ads successful?
Compute the value of the test statistic : Consider the following hypothesis test, answer the given questions
What is the cash receivable value after the write-off : The cash receivable value is $25600 before the write-off of a $2200 account. What is the cash receivable value after the write-off
Applicants for credit the rating : A bank's loan officer rates applicants for credit the rating are normally distributed with a mean f 200 and a standard deviatioon of 50 find the 60th percentile
What is the required rate of return on stock : The common stock of ABC Industries is valued at $39.4 a share. What is the required rate of return on this stock?
What is your story about how to construct good portfolios : What is your story about how to construct good portfolios (trading strategy)? In other words, which firm-level variable(s) can serve as a standard.
Find out the cost of annual updates involving new software : Our team will have to find out the cost of annual updates involving new software and updating the firewall protection system.
Develop techniques for different disaster scenarios : Develop techniques for different disaster scenarios. Explain and develop a business continuity plan to address unforeseen incidents.
How much will S company receive when the bonds are issued : The market rate on April 1st is 6%. How much will S company receive when the bonds are issued? Explain in detail

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