What is the value of rustenburg share today

Assignment Help Accounting Basics
Reference no: EM132081085

Question 1 -

1. Kimberley Limited is expected to pay a dividend of 125 cents one year from today. You believe it can be sold for $35 one year from today. If the required return is 14%, what is the most you would pay today for Kimberley Limited?

2. FISH Limited's preferred shares will pay a dividend of 650 cents one year from today and every year thereafter. If the required return on its preferred shares is 7%, how much is the share worth?

Question 2 -

Rustenburg Mining Limited just paid a dividend of 400 cents per share. Investors require a 12% return, and dividends are expected to grow at 3% per year, forever.

1. What is the value of Rustenburg's share today?

2. What is the price of Rustenburg's share expected to be one year from today?

3. What is the expected capital gains yield for Rustenburg's stock?

4. What is the expected dividend yield?

Reference no: EM132081085

Questions Cloud

What was the legal basis for treating people as property : What was the legal basis for treating people as property? What were some of the major legal hurdles presented by treating human beings as legal property?
Explain the functionality the semicolon in java programming : You need at least a paragraph explaining the functionality of system.out.printl, the calendar code and the semicolon in java programming;
What is the total amount of arthur tax liability : Arthur Wesson, an unmarried individual who is age 68, reports taxable incomeof $160,000 in 2015. What is the total amount of Arthur's tax liability
Major ways might this change the external environment : In what major ways might this change the external environment of U.S. businesses?
What is the value of rustenburg share today : Rustenburg Mining Limited just paid a dividend of 400 cents per share. What is the value of Rustenburg's share today? What is the expected dividend yield
Display the total sales in a bar graph for each store : Ask the user to enter the total sales for a chain of stores that you own. The number of stores will vary for each user input.
Prepare a statement of work : MBA41 - Strategic Project Management - Kaplan Business School - You are required to read a case study based on a fictional company and prepare a Statement
Write a program which checks each credit card number : Write a program which checks each credit card number in the file and determines whether or not the card number is valid.
Appropriate to check into potential employee credit history : Explain why it is or why its not appropriate to check into a potential employee's credit history before deciding to hire him or her?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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