What is the stock expected price five years from today

Assignment Help Financial Management

Reference no: EM131551611

A stock is expected to pay a dividend of $2.00 at the end of the year (i.e., D1 = $2.00), and it should continue to grow at a constant rate of 6% a year. If its required return is 15%, what is the stock's expected price 5 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131551611

Questions Cloud

Added to discount rate-Calculate the NPV of the project : TomsPlus Co. has an estimated WACC of 7.25% and a corporate tax rate of 30%. which needs to be added to the discount rate. Calculate the NPV of the project.

Calculate the price differential for company : Investors have invested $20,000 in common equity in a company. calculate the price differential for this company.

What is the expected opening price of the stock tomorrow : Assume the stockholders of GPO stock are in the 25 percent tax bracket. What is the expected opening price of stock tomorrow if tomorrow is ex-dividend date?

Calculate the present worth of the park project : Calculate the present worth of the park project using a 30-year life span and an interest rate of 7%, compounded annually.

What is the stock expected price five years from today : If its required return is 15%, what is the stock's expected price 5 years from today?

Pays no dividends and will not engage in stock transactions : The company pays no dividends and will not engage in any stock transactions.

What is the expected value of next year annual dividend : What is the expected value of next year’s annual dividend if the firm expects its earnings per share to be $6.33?

What would be the raise needed in massachusetts : what would be the raise needed in Massachusetts to give you the same net pay increase?

Invest in either the call option or the underlying stock : You have $5000 to invest in either the call option or the underlying stock.

User Account

All Pages