What is the value of share of stock

Assignment Help Financial Management

Reference no: EM131918200

1. Joker stock has a sustainable growth rate of 12 percent, ROE of 14 percent, and dividends per share of $1.4. If the P/E ratio is 19, what is the value of a share of stock? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

2. Sea Side, Inc., just paid a dividend of $1.72 per share on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a 19 percent return on the stock for the first three years, then a 14 percent return for the next three years, and then a 12 percent return thereafter. What is the current share price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131918200

Questions Cloud

Determining the musculoskeletal system : How can someone use medical terminology skills to combine word roots, prefixes, and suffixes that they already know in order to define new terms related.

What is the stock price of fairfax pizza expected : What is the stock price of Fairfax Pizza expected to be in 1 year?

How would you explain the business value : The theories of motivation, leadership, and even generation implications are at play in the workplace. Having an understanding of these are invaluable.

What is workplace violence and who is vulnerable : What is workplace violence and who is vulnerable? What can employers do to help protect their employees?

What is the value of share of stock : Joker stock has a sustainable growth rate of 12 percent, ROE of 14 percent, what is the value of a share of stock?

Why do organization have information deficiency problem : Why do organization have information deficiency problem? Suggest ways on how to overcome information deficiency problem.

Firm current assets are financed with long-term liabilities : When a portion of the firm’s current assets are financed with long-term liabilities, the firm

Evaluating non-traditional incentive systems : Write in paragraph form, your response (at least 200 words) to the three questions in the case. Use the case questions as the headings to inform your reader.

Discuss how female sexuality is depicted in each novel : Describe the characters and the different narrative techniques employed to portray them. Discuss how female sexuality is depicted in each novel.

User Account

All Pages