What is the stock current value per share

Assignment Help Financial Management
Reference no: EM132028900

Tresnan Brothers is expected to pay a $2.9 per share dividend at the end of the year (i.e., D1 = $2.9). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 7%. What is the stock's current value per share? Round your answer to two decimal places.

Reference no: EM132028900

Questions Cloud

It expects to maintain this debt level into the far future : Establishment Industries borrows $740 million at an interest rate of 7.0%. It expects to maintain this debt level into the far future?
Identify potential government credit resources for venture : Identify potential government credit resources for venture. Prepare summary of benefits and risks of Jen and Larry’s continued use of credit card financing.
Black-scholes model to estimate the value of the option : Use the Black-Scholes model to estimate the value of the option. Assume the variance of the project's rate of return is 25.25% and that the risk-free rate is 7%
Estimate present value of tax benefits from depreciation : The cost of capital is 14%, and the firm's tax rate is 34%. Estimate the present value of the tax benefits from depreciation.
What is the stock current value per share : The dividend is expected to grow at constant rate of 5% a year. The required rate of return on the stock, rs, is 7%. What is the stock's current value per share
Reliable gearing currently is all-equity-financed : Reliable Gearing currently is all-equity-financed. It has 27,000 shares of equity outstanding, selling at $100 a share.
What is present value of interest tax shields : Establishment will pay tax at an effective rate of 35%. What is the present value of interest tax shields if:
Compare the relative risks of the two firms : Compute the degree of operating, financial, and total leverage for firm R. Compare the relative risks of the two firms.
Value of equity is equal to book value of equity : How would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity.

Reviews

Write a Review

Financial Management Questions & Answers

  Considering project with cash inflows

Curtis is considering a project with cash inflows of $918, $867, $528, and $310 over the next four years, respectively. The relevant discount rate is 11 percent. What is the net present value of this project if it the start up cost is $2,100?

  Compute the percentage of earnings retained

Compute the Percentage of earnings retained,  Price/earnings ratio,  Dividend payout, Dividend yield and Book value per share for 2011, 2010, and 2009:

  Provides many career opportunities for individuals

The accounting profession provides many career opportunities for individuals. Identify the major fields that exist in accounting and comment on the major functions performed by individuals in each of these areas.

  How can macys corporation apply cultural change

How can Macy's corporation apply cultural change to the organization to improve overall growth of the company as a whole?

  Explain what it means by going long in futures contract

Explain what it means by going long in a futures contract.

  Net after-tax cost to call the bonds

Refer to Exhibit 18.1 start data below. What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding? a. $5,049,939 b. $5,315,725 c. $5,595,500 d. $5,890,000 e. $6,200,000. After tax cost of call prem..

  What annual interest rate must joe earn to reach his goal

Joe plans to retire in 15 years. He currently has saved up $100,000, and he believes he will need $1,000,000 at retirement.

  Compute tax loss on the sale and related tax benefit

Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $23,560.

  Fully hedge the interest rate risk on the bonds

The asset manager wants to fully hedge the interest rate risk on the bonds by using bond futures and to hedge the equity risk by using index futures.

  Improve the long-term intrinsic value of the firm

Improve the long-term intrinsic value of the firm - Find a web article related to time value of money. Post a link to the article and respond to the article, discussing why you find it especially interesting. Also, and critically, how would you imp..

  Assume that any expenditures or revenues

Assume that any expenditures or revenues are realized at the end of their assigned years. Show your work for partial credit.

  An investment project provides cash inflows

An investment project provides cash inflows of $690 per year for eight years. What is the project payback period if the initial cost is $1,475?  What is the project payback period if the initial cost is $3,500? What is the project payback period if t..

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