What is the required rate of return on this stock

Assignment Help Financial Management

Reference no: EM13873691

Proxicam, Inc., is expected to grow at a constant rate of 9.25 percent. If the company’s next dividend, which will be paid in a year, is $1.45 and its current stock price is $22.35, what is the required rate of return on this stock?

Reference no: EM13873691

Questions Cloud

Assuming annual payments-what is the value of the bond : AAA Corp is issuing a 10-year bond with a coupon rate of 6.76 percent. The interest rate for similar bonds is currently 6.37 percent. Assuming annual payments, what is the value of the bond?

Question regarding the incoming water temperature : Find the smallest possible mass flow rate of the air so the air exit temperature is 20oC larger than the incoming water temperature (so it can heat it).

How many bonds will the firm have to issue : Acme Inc. plans to issue 10-year, zero-coupon bonds to finance its capital expansion. Acme wants to raise $50 million for the expansion. If the required return on the bonds is 7.4%, how many bonds will the firm have to issue?

State the objective of the policy : Define Implementation stage (identify the accountable parties--agencies, state or federal departments, etc.-- and their roles in the various implementation of your policy)

What is the required rate of return on this stock : Proxicam, Inc., is expected to grow at a constant rate of 9.25 percent. If the company’s next dividend, which will be paid in a year, is $1.45 and its current stock price is $22.35, what is the required rate of return on this stock?

Properties can the phase of the mass : A substance is at 2 MPa, 17oC in a rigid tank. Using only the critical properties can the phase of the mass be determined if the substance is nitrogen, water or propane?

What is your estimate is the stocks current price : A company currently pays a dividend of $2.5 per share, D0 = 2.5. It is estimated that the company's dividend will grow at a rate of 18% percent per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The compan..

What is the market value of this stock if dividends grow : Nyeil, Inc., is a consumer products firm that is growing at a constant rate of 4.0 percent. The firm’s last dividend was $3.36. If the required rate of return is 20.0 percent, what is the market value of this stock if dividends grow at the same rate ..

Calculate the growth rate in dividends and dividend yield : You buy a share of The Ludwig Corporation stock for $18.60. You expect it to pay dividends of $1.09, $1.17, and $1.2559 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $31.90 at the end of 3 years. Calculate the growth rat..

User Account

All Pages