What is the stock intrinsic value

Assignment Help Accounting Basics
Reference no: EM133091747

Question - A company just paid a dividend of $1.38 and it currently has a very high growth rate of 13.1%. Analysts expect this high growth rate to remain at this pace for 3 years, in year 4, the growth rate is expected to decay down to the average economic growth rate which is currently assumed to be 2.46%. If the relevant required return is 10.2%, then what is the stock's intrinsic value using the multistage DDM method?

Reference no: EM133091747

Questions Cloud

Quantitative and qualitative research methods : Prepare an article of 3000 words in which Quantitative and Qualitative research methods are explained, compared, and discussed.
What is the partnership net profit before distribution : A partnership has a profit of $40,000 after including wages for one of the partners at $50,000. What is the partnership net profit before distribution
What is the strategy evaluation of alibaba : 1. What is the strategy evaluation of Alibaba 2. Where the company should go from now?
Application of cisg regarding country nepal : Find a case on the application of CISG regarding country Nepal, and report shortly what the case is about, and which CISG articles it concerned.
What is the stock intrinsic value : A company just paid a dividend of $1.38 and it currently has a very high growth rate of 13.1%. What is the stock intrinsic value
Projected cash flows in respective currencies : You are International Business Manager at a UK based company. Considering high demand your company plans a full-scale expansion. Your company has identified USA
How much is the taxpayers gross income from shares : The dividends are from companies which have a 30% tax rate. How much is the taxpayers gross income from shares
Effective implementation of management strategy : In your own words, discuss how the Balanced Scorecard can be used to help businesses to communicate their goals, strategize daily procedures, prioritize efforts
What is the taxpayer net tax obligation including medicare : A resident taxpayer, aged 30, had earned income of $39,000 for the financial year ending 30 June 2021. What is the taxpayer net tax obligation including Medicar

Reviews

Write a Review

Accounting Basics Questions & Answers

  What annual fixed amount do you need to contribute

What annual fixed amount do you need to contribute to your retirement fund to save the required $1,500,000 over this 35-year period

  What is the balance of the account tea equipment

What is the balance of the account Tea Equipment as reported in the Balance Sheet Statement at the end of January 31 (after AJE)?

  What the required rate of return for the stocks

The stock's realized rate of return was averaged at 15.0% over the last 5 years. What the required rate of return for the stocks of Everest Expeditions

  Are olson administrative costs inventoriabl

What criteria should be used to determine which of Olson's costs are inventoriable? Are Olson's administrative costs inventoriable?

  What rate of return will he earn on the investment

A professional investor offers to give you $60,000 for the annuity. If you sell it to him, what rate of return will he earn on the investment

  Discuss types of accounting anomalies

Describe each anomaly and list the kind of information needed to identify each. Provide a minimum of 3 examples to support your statement and findings.

  What is the master budget

Define budgets. How are budgets used in planning? What is the master budget? An operating budget? A financial budget

  What is the maturity date of the note

Gentry Wholesalers accepts from Benton Stores a $5,520, 4-month, 10% note dated May 31, What is the maturity date of the note

  Examine the earning of revenue by a business enterprise

The earning of revenue by a business enterprise is recognized for accounting purposes when the transaction is recorded.

  Start a school of nursing and the student nurses

A tertiary hospital is going to start a school of nursing and the student nurses will go for practical work to that hospital. The changes that are needed in hospital management for nurses include, allocation of new duties to different staff member..

  Moran owns a building he bought during year 0 for 230000 he

a. moran owns a building he bought during year 0 for 230000. he sold the building in year 6. during the time he held

  Major instrument inc manufactures two products missile

major instrument inc. manufactures two products missile range instruments and space pressure gauges. during april 47

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