What is the stock worth for lowell growth inc

Assignment Help Accounting Basics

Reference no: EM132816532

Problem 1: Lowell Growth Inc. is a high growth company and expects to use all its earnings in the next five years to fund its growth. At the end of the sixth year, the company will pay a dividend of $4.50 and these dividends will grow at a constant rate of 5% per year thereafter. What is the stock worth if you require 16% rate of return?

A. $47.48

B. $42.95

C. $19.48

D. $23.98

E. $29.48

F. $38.47

Reference no: EM132816532

Questions Cloud

Appraisal ratio of the combined portfolio : Portfolio P has an appraisal ratio of 0.8. If an investor puts half their money into P and half into a market index fund, the appraisal ratio of the combined

What differences do you see between the job : Ambulatory care in the US and even globally has expanded and continues to grow due to advances in medical technologies, diagnostic and therapeutic methods.

Key pieces of data that should be captured : a) What do you consider to be the key pieces of data that should be captured for all new customer orders?

How much of what we see in a photo is real : Photography is probably one of the greatest inventions of all time, but is it art? "For some time, photography was not considered an art.

What is the stock worth for lowell growth inc : What is the stock worth if you require 16% rate of return? Lowell Growth Inc. is a high growth company and expects to use all its earning

What is the total cost of producing axles : Axle and Wheel Manufacturing currently produces 1,000 axles per month. What is the total cost of producing 1,000 axles

Identify the risks to the organization and its it assets : Identify the risks to the organization and its IT assets. Identify any risks that are not covered by control objectives in your critique.

Discuss issues related to database files : Discuss issues related to database files tht can be found on smartphones and other personal devices, such as tablets

How much stock worth if want twelve percent rate of return : America Inc. paid a dividend of $2.50 recently. It has maintained a dividend growth rate of 7%. How much is the stock worth if you want 12% rate of return?

User Account

All Pages