What should be the current share price

Assignment Help Financial Management
Reference no: EM131995157

Stock of Company MS is expected to have extraordinary growth of 20% per year for ten years, at which time the growth rate will settle down to a constant 6%.

If the discount rate is 15% and the most recent dividend was $2.5, what should be the current share price?

Reference no: EM131995157

Questions Cloud

What must the expected return on this stock be : A stock has a beta of 1.04, the expected return on the market is 10 percent, and the risk-free rate is 3.5 percent.
Sensory neurons input of a scraped knee : Describe how this sensory neurons input of a scraped knee would result in the feeling of pain.
What do the letters mean in bubbleheee-rrr : Describe and discuss normal and abnormal findings when performing your postpartum assessment.
Determine the 95 percent probability range of returns : Assuming that the stock's returns are normally distributed, determine the 95 percent probability range of returns for this stock in any one given year.
What should be the current share price : If the discount rate is 15% and the most recent dividend was $2.5, what should be the current share price?
How much better is the expected return on the stock : How much better (or worse) is the expected return on the stock compared to what it should be according to the CAPM?
Organisms in regards to sexual reproduction : What are the challenges of aquatic organisms in regards to sexual reproduction. Why is it an advantage to retain the ability for asexual propagation?
Compute the premium of a 4-month european put : A stock is currently priced at $20. In 4 months its price will either go down 10% or up 20%.
Prescription sheet for a preoperative client : The nurse is reviewing a surgeons prescription sheet for a preoperative client that states that the client must be nothing by mouth

Reviews

Write a Review

Financial Management Questions & Answers

  Consider both hard and soft analysis

In addition, consider both “Hard” and “Soft” analysis identifying how they would be utilized by type of project.

  What is value of firm and value of firm equity

Use the free cash flow approach to calculate the value of the firm and the firm’s equity. What is Value of firm? Value of firm's equity?

  What was the average annual growth rate of salary

12 years ago, Maria's annual salary was $36,892. Today, she earns $85,736. What was the average annual growth rate of Maria's salary? Round the answer to two decimal places in pecentage form. Show work please.

  What will the value be if the firm borrow

What will the value be if the firm borrows $140,000 and uses the proceeds to repurchase shares? The corporate tax rate is 35 percent.

  What is the NPV to Crisps of offering credit to BigBag

Based on this information, what is the NPV to Crisps of offering credit to BigBag?

  Line of underground condos had sales

One of my favorite companies, Caskets-R-Us, famous for its line of "underground condos" had sales of $1,000,000. The cost of the caskets (they import them from China) was $220,000 and the labor costs (they arrive in kit form) was $400,000. what was t..

  What was your dollar return and percent return

If you owned 200 shares of FedEx, what was your dollar return and percent return?

  Profitability index when evaluating projects

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. The project will produce the same after-tax cash inflows of $497,644 per year

  What is wacc for company

The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?

  How long must development last to change the decision

How much must this cost of capital estimate deviate to change the decision? How long must development last to change the decision?

  Market is in equilibrium with the required return equal

Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $30 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required..

  Present value of the net cash flow

A company XYZ is considering manufacturing a product in space. The project lifetime is 10 years and has the following consecutive phases: Phase 1 (years 1 to 3): The engineering design and development requires 3 years. what is the present value of th..

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