What is the value of stock at the beginning

Assignment Help Financial Management
Reference no: EM131900703

1. A firm does not pay a dividend. It is expected to pay its first dividend of $0.42 per share in two years. This dividend will grow at 10 percent indefinitely. Use an 11.5 percent discount rate. Compute the value of this stock. (Round your answer to 2 decimal places.)

Stock value =  $

2. Waller Co. (WAG) paid a $0.145 dividend per share in 2006, which grew to $0.309 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 14.5 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)

Stock value = $

Reference no: EM131900703

Questions Cloud

What is the tax before tax cost of debt for olympic : What is the tax before tax cost of debt for Olympic.
What is return shareholders are expecting : The dividend is expected to grow at a 15 percent rate. The current stock price is $50.91. What is the return shareholders are expecting?
Stock price and stock price with new p-e : what would be the stock price in five years if the P/E ratio remained unchanged?
Discuss the important role of a project manager : What do you think is the most important role of a project manager? Do you think that role has or will change over time?
What is the value of stock at the beginning : What is the value of this stock at the beginning of 2013 when the required return is 14.5 percent?
How can the work environment inhibit learning of training : How can the work environment inhibit learning and transfer of training? Explain. What work environment characteristics do you believe have the largest.
Payback period for proposed capital budgeting project : What is the payback period for the following proposed capital budgeting project:
Net income before taxes but after deducting interest expense : its net income BEFORE taxes but after deducting interest expense is.
How much will the position in the stock be worth : how many shares will the investor have at the end of ten years? how much will the position in the stock be worth?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the black-scholes price for a call

Compute the Black-Scholes price for a call option with a strike price of $120, ?rst for a maturity of one year, and then for a variety of very long times to maturity.

  Estimate the expected return on stocks

Suppose that over the long run, the risk premium on stocks relative to Treasury bills has been 7.6% in the U.S. Suppose also that the current Treasury bill yield is 1.5%, but the historical average return on Treasury bills is 4.1%. Estimate the expec..

  How GASB standard setting benefits stakeholder groups

Briefly analyze the role of GASB and evaluate how GASB standard setting benefits stakeholder groups.

  What is the NPV break-even level of diamonds sold per year

What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 10%?

  What rate of interest did you earn

One years ago you invested $1800, today its worth $1924.62, what rate of interest did you earn?

  What is capital structure weight of debt on book value basis

Filer Manufacturing has 10.1 million shares of common stock outstanding. What is Filer's capital structure weight of debt on a book value basis?

  Indifferent between accepting the project and rejecting

Project that provides annual cash flows of $17,200 for eight years costs $78,000 today. What is the NPV for the project if the required return is 7 percent? What is the NPV for the project if the required return is 19 percent? At what discount rate w..

  Unfunded pension liability-present value of liability

Imprudential, Inc., has an unfunded pension liability of $850 million that must be paid in 22 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.0..

  Common stock valuelong dash-growth models-personal finance

What is the? firm's value if cash flows are expected to grow at an annual rate of 12?% for the first 2? years,

  Market conditions change-rate of return on uti stock

As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries stock as market conditions change. Suppose rRF=5% rM =12% and bUTI = 1.4. Under the current conditions what is rUTI, the required rate..

  What is the estimated net present value of the project

Garner-Wagner is considering investing in a project that requires an investment of $3,000,000. The project will generate a cash inflow of 500,000 per year for the next 5 years. The cost of capital is 10%. What is the project's net present value? What..

  Which is a purchase with a long-term investment

For most of us, a capital budgeting decision would be buying a house, which is a purchase with a long-term investment.

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