What is the value of limited brands stock

Assignment Help Financial Management
Reference no: EM132008058

1. Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 11.5 percent. LTD’s recent dividend was $0.90. What is the value of Limited Brands stock when the required return is 13.5 percent? (Round your answer to 2 decimal places.) Value of stock $

2. What was the standard deviation of the risk premium over this period? Year Large-Company Stocks U.S. Treasury Bills 1 –16.59% 7.67 % 2 –27.04 8.18 3 37.61 6.25 4 24.31 6.97 5 –7.92 5.64 6 6.95 8.21.

Reference no: EM132008058

Questions Cloud

What conditions must the company meet to recognize revenue : Question - Professional Research: FASB Codification. When there is a right of return, what conditions must the company meet to recognize revenue at time sale
What is the effective interest rate : What is the effective interest rate? What if there is a 2% prepayment penalty, what is effective interest rate if the loan is paid at the end of the 5th year?
Find the level of confidence that whiteboards : How would I find the level of confidence that whiteboards are longer than their blackboards if a chalkboard manufacture specifies that their chalkboards
Compute the direct labor variances for the month : A total of 11,700 direct labor-hours were worked. Compute the direct labor variances for the month
What is the value of limited brands stock : What is the value of Limited Brands stock when the required return is 13.5 percent?
Calculate the standard deviations and variances : Calculate the variances for X and Y. Calculate the standard deviations for X and Y.
Calculate the stock price for the company : calculate the stock price for the company if the expansion where to happen.
What is balance of remaining loan at the end of year five : What is the balance of the remaining loan at the end of year 5? 2. What is the size of the 61th payment?
Minimization linear programming problems differ : How do Maximization and Minimization Linear Programming Problems differ?

Reviews

Write a Review

Financial Management Questions & Answers

  Receive annual payments from the british government forever

An investor purchasing a British consol is entitled to receive annual payments from the British government forever.

  Runge-kutta method

Use Runge-Kutta method to answer the solution.

  Which expires immediately after the second dividend

Company plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. HAW's share price today is $45.60 and the continuously compounded quarterly interest rate is 2.1%. What is the price of a forward contract, which expires im..

  Violation of the provisions of the sherman act

Did Microsoft’s bundling of free Internet browser software with its Windows operating system violate U.S. antitrust laws and so is combining one product with another a violation of the provisions of the Sherman Act?

  Should they expand the line

A company is considering its line. The project would last 3 years and has an annual investment of $200,000. Should they expand the line?

  What is the current equivalent lump sum of settlement

After an injury, you win a lawsuit judgment of $3,524 per month starting next month for a total of 42 months. If the interest rate is 9.1% APR compounded monthly, what is the current equivalent lump sum of your settlement?

  Free-cash-flows method and market-based methods

Discuss the approach you would recommend for performing a valuation of common equity using the dividends valuation method, the free-cash-flows method, and market-based methods. Compare and contrast the advantages and disadvantages of each method.

  Expound on the determinants of default risk

Expound on the determinants of default risk. Calculate the YTM on a 20 year, 8% coupon bond that is selling for $1,180 and the par value is $1,000.

  The firm will not be issuing any new stock.

The firm will not be issuing any new stock. What is SMH's WACC?

  Prior to utilizing a private annuity

Prior to utilizing a private annuity, all of the following are important considerations except:

  What is the percentage price change of bonds

Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..

  Computing the standard deviation for individual investment

(Computing the standard deviation for an individual investment) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund's investment objective is to acquire home mortgage securities at what it hopes will be bargai..

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