What is the share price today based on Gordon growth model

Assignment Help Accounting Basics
Reference no: EM133064086

Question - Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate). There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends. The required rate of return on Extruded's shares is 13%. What is the share price today based on the Gordon growth model?

Reference no: EM133064086

Questions Cloud

What is the formula for calculating assets conversion cycle : Question - What is the formula for calculating assets conversion cycle and numbers of days that the company need non spontaneous financing
Explain their outsourcing strategies : Conduct research select an international organization of your choice and explain their outsourcing strategies.
Incremental benefit-cost ratio for alternative : Two mutually exclusive alternatives are being considered as possible ways to reduce traffic congestion. User benefits come from reduced congestion once the proj
Economic value of credible commitments : Tesla recently announced that it was committed to building a new gigafactories in Austin, TX and Berlin, Germany where they will produce the Cybertruck, Model 3
What is the share price today based on Gordon growth model : The required rate of return on Extruded's shares is 13%. What is the share price today based on the Gordon growth model
Describing the character of leonor or don juan : 1. Describes about the play in general, when it was written and by whom. In the next write about the characters, themes and the main subject of the play in Engl
How much is the revised depreciation : On January 2, 2020, VSG purchased a transportation equipment costing P2,400,000. How much is the revised depreciation for 2022
Mean for the survival of small firms : What shape of the LAC curve has been found in many empirical studies?
How much is balance of the accumulated depreciation account : How much is the balance of the accumulated depreciation account pertaining to the equipment as of December 31, 2023

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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