What is the value of a common stock

Assignment Help Financial Management
Reference no: EM132048409

Question

What is the value of a common stock if (using the dividend growth model) the firm's earnings and dividends are growing annually at 4 percent, the current dividend is $1.32, and investors require a 9 percent return on investments in common stock?

Reference no: EM132048409

Questions Cloud

Relative error for the quantity : 1. Determine the % relative error for the following quantity: (5.47±0.05) + (0.47±0.03) - (0.87±0.02)
What should the new avolume of the balloon be : A student increases the temperature of a 556 cm cubed balloon from 278 k to 232 k. Assuming constant pressure, what should the new avolume of the balloon be?
Calculate the current market price of a share of triple m : Calculate the current market price of a share of Triple M Corporation: Make sure you convert percentage figures into decimals, please round-off to four decimals
What is the equation for the reaction of solid silicon : What is the equation for the reaction of solid silicon dioxide with hydrofluoric acid to yield gaseous silicon tetrafluoride and liquid water.
What is the value of a common stock : What is the value of a common stock if the firm's earnings and dividends are growing annually at 4 percent.
What volume will the gas occupy at a pressure : What volume will the gas occupy at a pressure of 0.15 atm please explain how you got the answer?
What value would you place on a share of van buren stock : Van Buren, Inc., currently pays $2.15 per share in dividends on its common stock. Dividends are expected to grow at 5.00% per year forever.
Potassium hydrogen phosphate : What volume of 0.08892M HNO3 is required to react completely with 0.2352 g of potassium hydrogen phosphate?
How low can the price of disney shares fall : You've borrowed $18,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the free cash flow to equity

What is the change in net working capital for 2015? What is the Value of the Firm (Assets)? What is the Free Cash Flow to Equity for 2015?

  Key types of stock typically issued by publicly traded

What are the key types of stock typically issued by publicly traded organizations? If you were to invest $10,000 of your own funds, which type would you choose, why?

  Business and government relations

Discuss the main reasons why a business should or should not be involved in political discussions or take a political stand. Use terms found in Chapter 9 to demonstrate your understanding of the material.

  What is the present value of the payments-ordinary annuity

What is the present value of the payments if they are in the form of an ordinary annuity?

  Value of the firm based on the free cash flow model

What is the value of the firm based on the Free cash flow model? What is the value of the firm on a per share basis?

  What is the current value of the company

Suppose the company can borrow at 7 percent. What will the value of the firm be if the company takes on debt equal to 40 percent of its unlevered value?

  Data to forecast sales-net operating profit after taxes

Start with the partial model in Ch07 P23 Build a Model.xlsx on the textbook’s Web site. Traver-Dunlap Corporation has a 15% weighted average cost of capital (WACC). Its most recent sales were $980 million and its total net operating capital is $870 m..

  Pays current dividend

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 24% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value of Deployment Specialists sto..

  What are the costs and benefits of given change

The Boston Fed issues the New England dollar, the Richmond Fed issues the Mid-Atlantic dollar, and so on.  - What are the costs and benefits of this change?

  Uses the completed contract method

If HCC uses the completed contract method, what revenues and expenses would HCC recognize in year 2006, 2007, and 2008?

  What about moral responsibility and legal responsibility

Company A is based in the USA and has a subsidiary, Company B, that operates in the small island nation of Domino. Company B enters into a joint venture with a business based in Domino call Company C. An explosion occurs in the Domino factory and sev..

  What about from the perspective of stock analyst

What part of the stock valuation process do you find most troubling as an investor? What about from the perspective of a stock analyst?

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