What is value today of stock that will pay dividend

Assignment Help Financial Management

Reference no: EM13882065

What is the value today of a stock that will pay a dividend of $4.10 one year from now, a $4.70 dividend in year two and a dividend of $5 three years from now if its expected price in year three is $35? The stock has a required rate of return of 11%.

A. $32.81 B. $39.76 C. $36.76 D. $35.04

Reference no: EM13882065

Questions Cloud

Issues zero coupon bonds on the market : Atlantis Fisheries issues zero coupon bonds on the market at a price of $501 per bond. These are callable in 10 years at a call price of $560. Using semi annual compounding, what is the yield to call for these bonds?

Determine if the grant proposal is economically justified : Use the conventional and modifi ed B/C methods to determine if this grant proposal is economically justified over a 10-year study period. The foundation's discount rate is 6% per year.

What is the yield to maturity and yield to call on this bond : A bond that settles on June 7, 2013, matures on July 1, 2033, and may be called at any time after July 1, 2023, at a price of 146. The coupon rate on the bond is 6.8 percent and the price is 160.00. What is the yield to maturity and yield to call on ..

Amount of funds year to cover this anticipated cash outflow : The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $25,100,000 be paid to the president upon the completion of her first 7 years of service. The company wants to set aside an eq..

What is value today of stock that will pay dividend : What is the value today of a stock that will pay a dividend of $4.10 one year from now, a $4.70 dividend in year two and a dividend of $5 three years from now if its expected price in year three is $35? The stock has a required rate of return of 11%.

Develop selection criteria for the country manager position : Phase 1: Staffing, Recruiting, and Selection (approximately two pages). Based on the scenario: Conduct a job analysis and create a comprehensive job description. Develop a recruiting plan based on the tasks discovered in the job analysis. Develop sel..

Cost of goods sold-administrative and selling expenses : During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,433,000, $435,800, and $490,800, respectively. In addition, the company had an interest expense of $2..

Human resources management and payroll cycle : Human Resources management and Payroll Cycle

Determine which should be selected if they are independent : At a MARR of 7.5% per year, determine which should be selected, if they are ( a ) independent and ( b ) mutually exclusive.

User Account

All Pages