What price should the stock sell for

Assignment Help Business Economics

Reference no: EM13978949

A stock is paying a dividend of $3.10 annually and has an expected rate of return of 7%. You expect the dividend to grow at a rate of 2% for the indefinite future. What price should the stock sell for?

Reference no: EM13978949

Questions Cloud

How much of each kind of ingredient would be in a single : A medication contains 9 mg of active ingredients for every 1 mg of inert ingredients. How much of each kind of ingredient would be in a single 250-mg caplet?

Treasury bills are : Treasury bills are

If the federal government runs a surplus : If the federal government runs a surplus

What price should the stock sell for : A stock is paying a dividend of $3.10 annually and has an expected rate of return of 7%. You expect the dividend to grow at a rate of 2% for the indefinite future. What price should the stock sell for?

What is the maturity risk premium for the two-year security : Maturity Risk Premium The real risk-free rate is 2.25%, and inflation is expected to be 3.75% for the next 2 years. A 2-year Treasury security yields 9.75%. What is the maturity risk premium for the 2-year security?

The default risk premium on the corporate bonds : Treasury bonds with the same maturity are yielding 4.7% per year, and the real risk-free rate (r*) is 2.05%. The average inflation premium is 2.25%, and the maturity risk premium is estimated to be 0.1(t - 1)%, where t = number of years to maturity. ..

At what price would you receive a margin call : The current market price for XYZ is $52 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year. You believe the stock price will increase over the next year and wish to trade exactly one round lot. What trad..

Determine the probability that the ending value : At other casinos, the dealer is required to take a hit on soft 17, but must stay on all other hands with a value of 17, 18, 19, 20, or 21. For this situation, determine the probability of the ending value of the dealer's hand.

User Account

All Pages