What is the value per share of your firm stock

Reference no: EM132139330

Question - Assume that the average firm in your company's industry is expected to grow at aconstant rate of 6 percent and its dividend yield is 7 percent. Your company is about as risky as the average firm in the industry, but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 10 percent [D1 = D0(1+g) = D0(1.50)] this year and 25 percent the following year, after which growth should match the 6 percent industry average rate. The last dividend paid (D0) was $1. What is the value per share of your firm's stock?

Reference no: EM132139330

Questions Cloud

By what percentage the price of this bond would change : If the market interest rate suddenly goes up from 10% t0 15%, the Price of this Bond would Change by what percentage

Discuss the principle of least privilege : Discuss the principle of least privilege in at least 250 words. Explain how this principle impacts data security.

Discuss recent cyber security related events : You recently joined a local cyber security "hackers" group that meets once a month to discuss recent cyber security related events, as well as tools.

Identify the market they are traded on : Describe the industry in which they operate and key elements of the economy or current events impacting your organization.

What is the value per share of your firm stock : Your company is about as risky as the average firm in the industry, The last dividend paid (D0) was $1. What is the value per share of your firm's stock

Calculate costs of shipping to portland and riverside : Calculate costs of shipping to Portland and Riverside by pallets. Revenue of Portland and Riverside minus transportation costs .

What are your job responsibilities : The discussion assignment provides a forum for discussing relevant topics for this week based on the course competencies covered.

What is the target market and how will you penetrate it : What is the target market and how will you penetrate it?Presents the need for the practice, who it will be marketed to and why that group.

What ideas or feelings are conveyed by the images : Identify the key images in the poem, which you believe are vital to understanding it. What ideas or feelings are conveyed by the images?

User Account

All Pages