What price per share should the stock move immediately

Assignment Help Finance Basics

Reference no: EM133273732

Question - Lempro Inc. has met with investors and laid out a plan to change the amount it pays in dividends. It is planning to pay an equal dividend at the end of each of the next three years (starting at t=1) in the amount of $2.70; and thereafter increase the dividend 2.5% each year indefinitely. Upon hearing this news, to what price per share should the stock move immediately in anticipation of the new expected stream of dividends, given an 8% cost of equity (discount rate)?

Reference no: EM133273732

Questions Cloud

Explain historical standard deviation : A mutual fund's daily return has a historical standard deviation of 4%. Recently, the mutual fund collect a 24 days sample, and the sample standard deviation is

What is the npv of this opportunity : The corporate tax rate on preferred dividends is 25% except that 70% of preferred dividend income - What is the NPV of this opportunity

Explain the aggregate expenditure function shifts : Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:

Explain the care you will be providing throughout : NGR 5141 University of Central Florida Apply ethical aspects to all criteria and medical situation, this is an ethical presentation

What price per share should the stock move immediately : What price per share should the stock move immediately in anticipation of the new expected stream of dividends, given an 8% cost of equity

What is your justification for that code : What code would you assign and What is your justification for that code - The patient presented with hives

What is its present value : An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, What is its present value

What are his percentiles for weight : NUR 511 Florida International University Using appropriate growth charts, what are his percentiles for weight, length, and head circumference

What is each investment''s internal rate of return : Each investment costs $1,400, and the firm's cost of capital is 10 percent. What is each investment's internal rate of return

User Account

All Pages