What other stock valuation methods could you use

Reference no: EM131932119

Question: Advanced Robotics Inc expects to pay a $2.20 dividend next year and have a 5.5% dividend growth rate. But due its risky profile, Advanced Robotics Inc has a 1.6 beta. What price would you buy the stock? Assume 3% risk free rate and 9% for the market risk premium.

Assuming the same discount rate you found above, what should the price of the stock price be 5 years from now? What do you think are the shortfalls of the dividend discount model? What other stock valuation methods could you use?

Reference no: EM131932119

Questions Cloud

What was the free cash flow in given case : Acme Incorporated had $10,750 of sales, $6,000 of operating costs, and $1,550 of depreciation. The company had $3,500 of debt for which it pays 6.25% interest.

What other problems might the other allocation methods : Include how markets will allocate goods and services if not by price. What other problems might the other allocation methods create?

Reserve ratio of ten percent : Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, one million dollars in required reserves

What is the firm expected rate of return : Acme Inc.'s stock has a 30% chance of producing a 30% return, a 40% chance of producing a 12% return, and a 30% chance of producing a -10% return.

What other stock valuation methods could you use : Advanced Robotics Inc expects to pay a $2.20 dividend next year and have a 5.5% dividend growth rate. But due its risky profile, Advanced Robotics Inc.

Cash flows of mnc are generated from portfolio of currencies : The dollar net cash flows of an MNC are generated from portfolio of currencies.

Prepare a report on the analysis approach of interview data : Advanced Educational Research Assignment - Prepare a report on the analysis approach and interpretation of the interview data

What is the firm ebit : Advantage First Corporation has sales of $4,504,470;Income tax $448,436,the selling,general and administrative expenses of $280,367,depreciation of $355,994.

Identify healthcare providers contracts and payment methods : Managed Health Care Quality - Address what the selected emerging managed healthcare delivery model has done to improve quality of care.

User Account

All Pages