What should be the current price of stock

Assignment Help Financial Management

Reference no: EM131903961

A stock just paid a dividend of $3 per share, and is expected to grow the dividend at 15% per year for the next 3 years. After than growth rate will fall to 4% per year in perpetuity.

The market's required return on this security is 14%. What should be the current price of this stock?

Reference no: EM131903961

Questions Cloud

Friend rate of return on investment : What was your friend's rate of return on this investment?

The operating cycle is the length of time from : The operating cycle is the length of time from:

Euroean put futures option : Calculate the value of a 5 month Euroean put futures option when the futures price is $19, the strike price is $20,

Obligations out of operating cash flows in timely fashion : The ability of a firm to meet its credit obligations out of operating cash flows in a timely fashion is called:

What should be the current price of stock : The market's required return on this security is 14%. What should be the current price of this stock?

The money european call option on stock index : Calculate the value of a three month at the money European call option on a stock index when the index is at 250, the risk free rate is 10% per annum,

Difference in utility of certain outcome-uncertain outcome : What is the difference between the utility of the certain outcome and the uncertain outcome?

Three month put option on index with strike price : What is the value of a three month put option on the index with a strike price of 245?

What is the net present worth of automation system : The firm's inflation-free MARR is 10%. The firm's tax rate is 30%. What is the net present worth of this automation system? "

User Account

All Pages