What is your expectd rate of return

Reference no: EM13264550

Made-It common stock currently sells for $22.50 per share. The company's executive anticipate a constant growth rate of 10 percent and an end-of-year dividend of $2.

a. What is your expectd rate of return if you buy the stock for $22.50?

b. If you require a 17 percent return, should you purchase the stock?

Reference no: EM13264550

Questions Cloud

Explain which functional groups act as a nucleophile : Which functional groups are based on carbonyl moiety. Which functional groups act as a nucleophile and an electrophile

What is the break-even point in pairs of shoes : Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $58. Footwear Inc. incurs fi..

Explain how would prepare a water in ethyl alcohol solution : How would you prepare a 25.0% water in ethyl alcohol solution using 100.0 ml of ethyl alcohol (the density of alcohol is 0.7893 g/ml)

Calculate the transfer function for the cascade of hp and lp : Design and Analysis: The simple high-pass and low-pass filters shown to the right have been analyzed in class. The transfer functions are H-HP(f) = j fRC / ( 1 + j fRC ) and H-LP(f) = 1 / ( 1 + j fRC ). In either case the -3dB frequencies are F-3D..

What is your expectd rate of return : Made-It common stock currently sells for $22.50 per share. The company's executive anticipate a constant growth rate of 10 percent and an end-of-year dividend of $2.

How far is the objects image from the lens : You have a lens whose focal length is 12.7 cm. You place an object on the axis of the lens at a distance of 6.25 cm from it. How far is the object\'s image from the lens

Compute the density of this metal : Molybdenum crystallizes in a body-centered cubic array of atoms. The edge of the unit cell is 0.314 nm long. Calculate the density of this metal.

Determine the diameter of the tire : In the days of horse-drawn wagons, iron tires used to be placed on wooden wagon wheels by heating the iron rims, what diameter will the tire have when it is heated to 680 oC

User Account

All Pages