User Account

All Pages

What price does the? dividend-discount model

Assignment Help Financial Management
Reference no: EM131498931

Assume? Colgate-Palmolive Company has just paid an annual dividend of $ 0.99. Analysts are predicting an 10.1 % per year growth rate in earnings over the next five years. After? that, Colgate's earnings are expected to grow at the current industry average of 5.3 % per year. If? Colgate's equity cost of capital is 7.8 % per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict Colgate stock should? sell?

Reference no: EM131498931

Questions Cloud

Corporate network and satellite offices : Develop the PCS security program charter for the corporate network and satellite offices.
How do these relate to customer loyalty : Customer loyalty can be a powerful competitive advantage. And customer loyalty is more than repeat purchasing. Customers who are loyal tend to buy more over.
Calculate what price katrinas candies should charge : Algebraically, determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run.
By getting closer to the source of payment : By getting closer to the source of payment, lockboxes can be used to reduce:
What price does the? dividend-discount model : Assume? Colgate-Palmolive Company has just paid an annual dividend of $ 0.99. what price does the? dividend-discount model predict Colgate stock should? sell?
Jobs and career opportunities in information systems : Describe three or four types of jobs and career opportunities in information systems and in related fields.
Explain strategic decision makers regarding business data : A study by Fuld & Company, a competitive-intelligence firm, found that companies fail to use as much as 70 percent of the online business data they buy.
Would the adoption of ifrs increase transparency of us : What are some of the similarities and differences between U.S. GAAP and IFRS? Would adoption of IFRS increase transparency of U.S. based financial statements?
According to the? dividend-discount model : According to the? dividend-discount model, what is the value of a share of Gillette stock if the? firm's equity cost of capital is 8.1 % ?

Reviews

Write a Review

Financial Management Questions & Answers

  The default risk premiums on the bonds issued

A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%. A bond issued by Ford Motor Company due in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%. The defau..

  The farm will require an initial investment

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.90 million for land and $9.10 million for trucks ..

  ?nd the stochastic di?erential equation

Estimate the mean rate of return and the standard deviation of each of these assets.- Using their correlation coe?cient ρ, ?nd the weight of each of these assets that will give an e?cient portfolio with minimum variance.

  Reduced by replacing common equity with preferred stock

If a firm is exposed to a high degree of business risk as a result of its high operating leverage, then it probably should offset this risk by using a larger-than-average amount of financial leverage. This follows because debt has a lower after-tax c..

  Overall cost of debt is weighted average of that implied

Vedder, Inc., has 6.1 million shares of common stock outstanding. The current share price is $61.10, and the book value per share is $4.10. Vedder also has two bond issues outstanding. Assume that the overall cost of debt is the weighted average of t..

  What is its current value

A firm recently paid a $0.50 annual dividend. what is its current value?

  What is the free cash flow for sammies socks

You have been given the following Income statement elements for Sammie's Socks Inc. for 2014. what is the Free Cash Flow for Sammie's Socks for 2014?

  What is the investors profit or loss

An investor with no other positions sells 1 ABC Jan 45 call at 2.50. If option expires when the stock is trading at 44.50, what is the investor's profit or loss

  Relationship between bondholders and stockholders

Which one of these best describes the relationship between bondholders and stockholders at a time when it appears the firm may be facing increased financial distress?

  Calculate the annual cash flow of each

For each of the following annuities, calculate the annual cash flow. (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Calculate the annual cash flow of each?

  Considering issuing new shares of common stock

Cayman’s Crafters is also considering issuing new shares of common stock. Their investment banker has advised them that it is a good time to sell and that the market’s required rate of return on similar securities is currently 8.5%. You will be recei..

  What is the breakeven salvage value

A manufacturer of aerospace products acquired a new multispindle, multi-turret turning center for $250,000. The machine will generate new revenue of $80,000 per year. Now, suppose that the project duration is 5 years and that an estimate of the value..

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