User Account

All Pages

What is the value of the stock

Assignment Help Finance Basics
Reference no: EM132731597

The risk-free rate is 3.61% and the market risk premium is 9.03%. A stock with a β of 1.75 just paid a dividend of $1.32. The dividend is expected to grow at 24.38% for three years and then grow at 3.76% forever. What is the value of the stock?

Reference no: EM132731597

Questions Cloud

Find out the annual probability of default : In mid-2009, Rite Aid had CCC-rated, 6-year bonds outstanding with a yield to maturity of 17.3%. At the time, similar maturity Treasuries had a yield of 3%
What is the value of the tax shield-facebook : Facebook, Inc. had no debt on its balance sheet in 2014, but paid $2 billion in taxes. Suppose Facebook were to issue sufficient debt to reduce its taxes
What is the resulting annual rate : Suppose your investment is compounded at a rate of 0.5% per month. What is the resulting annual rate?
Find out account interest rate : Exactly 18.00 years from today the account is worth $1,690.00. What was the account's interest rate?
What is the value of the stock : The dividend is expected to grow at 24.38% for three years and then grow at 3.76% forever. What is the value of the stock?
Describe an achievement of which you are quite proud : Describe an achievement of which you are quite proud, one where your leadership, organization skills, and effort made a success happen that benefited others.
What is the net monthly benefit : If Bonnie were to become disabled and unable to work, what is the net monthly benefit she would be entitled to?
What you think is important in creating healing environment : Create a Class Presentation where you describe what you think is important in Creating a Healing Environment, why that is important for your health.
What is the risk-free rate : A put option on the same stock with the same strike and maturity sells for $6. What is the risk-free rate?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is a dividend reinvestment plan drip and how does it

what is a dividend reinvestment plan drip and how does it

  Determining the preferred stock and common stock

The company's capital structure is distributed equally between debt, preferred stock and common stock. It has also the following information:

  A growing company with positive net profit

Comment the following statement: ”Direct bankruptcy costs such as lawyer fees are substantial. Therefore, a corporation should take as little debt as possible to avoid potential direct costs of bankruptcy.

  What is the value of the bond when you purchased it

You purchased an annual interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coupon interest rate

  How much would you expect to be present after the s phase

If a cell has 20 picograms of DNA before the S phase, how much would you expect to be present after the S phase?

  Find careers in finance that you are interested in applying

Using various employment websites (i.e. Monster.com, Indeed.com, USAjobs.gov) find three careers in finance that you are interested in applying to.

  Calculate the macaulay duration d

The current price of a bond having annual coupons is $1,312. The derivative of the price function of the bond with respect to the yield to maturity is -$7,443.81 when evaluated at the current annual yield, which is 7%. Calculate the Macaulay durat..

  Multiples method of estimating value

What does the multiples method of estimating value say your firm should offer for PBCB? Explain your answer and show your calculations.

  Probability that at least one of them is a girl

Among the next seven randomly selected births in the country, what is the probability that at least one of them is a girl?

  Using the constant growth model for stock valuations

The Kummins Engone Corporation common stock has a beta of 0.9. The current risk-free rate of return is 5% and the market risk premium is 8%.

  Calculate a the current ratio b the debt to total assets

kalbs books amp music inc. reported the following selected information at march 31.2012total current assets262787total

  Should a firm pay cash dividends in a year

Why do investors generally consider common stock to be riskier than preferred stock?- Should a firm pay cash dividends in a year in which it raises external common equity?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd