What price must expect evco stock to sell for immediately

Assignment Help Financial Accounting
Reference no: EM132904069

Question 1: Assume Evco, Inc. has a current stock price of $49.41 and will pay a $2.25 dividend in one year; its equity cost of capital is 15%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price?

Reference no: EM132904069

Questions Cloud

What is the credit spread on the BBB bonds : What is the price (expressed as a percentage of the face value) of the Treasury bond? A BBB-rated corporate bond has a yield to maturity of 9.4%.
Compute the yield to maturity for each bond : Compute the yield to maturity for each bond, 1, 2, 3, 4, and 5-year bond. Is the yield curve upward? sloping, downward? sloping, or? flat?
What is the scope of the problem globally : West Nile virus, Ebola What is the scope of the problem globally? In the US? In your state? What systems are in place to address it?
Define and describe IDaaS and SSO : Define and describe SSO. Define and describe IDaaS. Define SAML and describe its purpose. Define and describe FIDM.
What price must expect evco stock to sell for immediately : What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price?
What is the price per share of nogrowth stock : What is the price per share of NoGrowth stock if? firm's equity cost of capital is 10.1%?? NoGrowth Corporation currently pays a dividend of $0.59 per? quarter
Message authentication code-what is digital signature : List three approaches to message authentication. What is a message authentication code? What is a digital signature?
Calculate the altman z-score for the firm : Calculate the Altman's Z-score for this firm. X12345 = Net working capital/Total assets = .21, X = Retained earnings/Total assets = .7.
Future direction of health care discussion : Where do you think the future of Healthcare lies? Should the government take on Health care? Why and why not?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Analyze the relevance of changes in net income to investors

Explain the relevance of changes in net income to investors. Determine the ending balance in shareholders' equity. Why would organizations such as Labor Unions be interested in this?

  Prepare newcomb corporations income statement for 2009

At what amount should each investment be carried on the balance sheet at the end of the year? Explain your answers and show any calculations necessary to arrive at your answers.

  Prepare an income statement for the year

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to Martinez Company ($000 o..

  Company planned to tear old building down-build new building

Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. If management desired the smallest depreciation possible over the next five (5) ..

  How much of a marriage penalty will they incur

Linda's 2020 taxable income as a single individual would be $212,000. When they marry before the end of 2020, how much of a marriage penalty will they incur

  Risk-averse investor

The risk-free rate is 4%.  The expected market rate of return is 11%.  If you expect stock X with a beta of .8 to offer a rate of return of 12 percent, then you should.

  Find what total cash inflows from operating activities are

Cash of $53,000 was borrowed on a 3-year note payable. Based on this data, What total cash inflows from operating activities are

  What is the cost of preferred stock if average the cost

$2.25 per $100 face value and is trading for $14.95. What is the cost of preferred stock if we average the cost of both existing preferred stocks?

  Prepare the statement of cash flow under the indirect method

Prepare the statement of cash flow under the indirect method for the year ended December 31, 20X3. The topic is the status of the company based on cash flow.

  Show the before-and-after effects of the dividend

Show the before-and-after effects of the dividend on the The components of stockholders' equity, Shares outstanding, Par value per share.

  Manufacturer of telecommunications equipment

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. Compute Pittman Company’s break-even poin..

  Compute the cash payments for operating expenses

Yaddof Corporation reports operating expenses of $70,000 excluding depreciation expense of $15,000 for 2014. Compute the cash payments for operating expenses in 2014.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd