What is the required rate of return on stock

Assignment Help Finance Basics
Reference no: EM132596525

ABC company is expected to grow at a constant rate of 7 percent. If the company's next dividend, which will be paid in a year, is Rs.1.15 and its current stock price is Rs.22.35, what is the required rate of return on this stock?

Reference no: EM132596525

Questions Cloud

Compute the 1-year value of a european call : Consider a 3-period Cox-Ross-Rubinstein binomial model. The initial price of the risky asset is R100. The risk-free rate of interest
Which plans would provide the lowest production cost : Which of the following plans would provide the lowest production cost? Assume that the material and overhead costs are the same in each plan.
Investigate the importance of small business : Discuss about the following.of small business.Explain why many large businesses are trying to"think small.
Enrp20001 literature review assignment : ENRP20001 Literature Review Assignment Help and Solution, Engineering Research Project Planning - Assessment Writing Service
What is the required rate of return on stock : ABC company is expected to grow at a constant rate of 7 percent. If the company's next dividend, which will be paid in a year
How determine the optimal order quantity : Determine the optimal order quantity using the appropriate inventory management model. Provide the results you used in making your decision.
What is the benefit of analyzing the market : a) What changes would you expect in the standard deviation for a portfolio of between 4 and 10 stocks, between 10 and 20 stocks, and between 50 and 100 stocks?
Identify correct financial statement for junior accountants : Identify the correct financial statement for your junior accountants that will provide the investor with the information it has requested
Experiment of tossing a coin twice : 1.Use the given values to find the following. (Enter your answers as fractions.)

Reviews

Write a Review

Finance Basics Questions & Answers

  How much of the new investment must be financed by common

To maintain the present capital structure, how much of the new investment must be financed by common equity? Assume that there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of ..

  Discuss the four major categories of cost and explain each

it is budget time and the ceo has asked you to develop a presentation on cost concepts and how it is used in decision

  Abcnbspjust paid the dividend of d0 3nbsp analysts expect

abcnbspjust paid a dividend of d0 3.nbsp analysts expect the companys dividend to grow by 32 this year by 20 in year 2

  How important are management meetings

How important are management meetings? Who are expected to participate?

  Calculating the operating cash flow

ABC Company has a proposed project that will generate sales of 472 units annually at a selling price of $206 each. The fixed costs are $7,317 and the variable.

  Ethical considerations that might impact decisions

What does it mean that managers should maximize shareholder wealth "subject to ethical constraints"? What are the ethical considerations that might impact decisions that result in cash flow and price effects that are less than they might otherwise..

  Compute merck’s net operating income for the three years

Discuss how each of these non-operating items influenced the basic accounting equation, and compute Merck's net operating income for the three years. Comment on Merck's earnings trend.

  Calculate the risk-adjusted discount rate

A firm has a beta of .45. The current market return is 13% while the current return on Treasury securities is 5.2%.

  What is the break-even level of units?

What is the break-even level of units?

  Sam refuses to retire until his retirement account has a

sam refuses to retire until his retirement account has a balance of at least 381557. sam refuses to make any more

  What was the real cost of borrowing hkd for one year

If you borrowed HKD100,000 on January 1, converted this to dollars and used these funds for one year, and then paid off the HKD loan on December 31, what was the real cost of borrowing HKD for one year?

  At the end of the year the firm has retained earnings of

bridgewater furniture has sales of 811000 costs of 658000 and interest paid of 21800. the depreciation expense if 56100

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