What should he have valued the stock at

Assignment Help Finance Basics
Reference no: EM132484859

Tom just purchased a stock that he expects to hold for the entire year, receive a dividend of $4 and sell at the end of the year for $58. Assuming his required rate of return is 12%, what should he have valued the stock at?

Reference no: EM132484859

Questions Cloud

Standard deviation of the estimated returns-carson inc : Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns
Prepare the journal entries for ritt in to arrangement : Prepare the journal entries for Ritt in 2020 related to this arrangement as well as any adjusting journal entries at its December year end.
Where can you find evidence to inform your thoughts : Where can you find evidence to inform your thoughts and scholarly writing? Review the information presented in the Learning Resources for using.
What is single-period return of wilson : Wilson just purchased a security for $120, and is expecting a $2 dividend before selling it for $140. What is his single-period return (holding period return)?
What should he have valued the stock at : Tom just purchased a stock that he expects to hold for the entire year, receive a dividend of $4 and sell at the end of the year for $58.
Write down description of the intervention : Write a 2 page paper addressing the sections below of the research proposal. Instruments: Description, validity, and reliability estimates, which have been.
Determine the price at which this stock should sell : If the cost of equity of for this stock is 9%, determine the price at which this stock should sell.
Discuss the main real competitors for reeby sports : Discuss the main real competitors for Reeby Sports and discuss the challanges / trends of this industry (max). What will be the value of the company
How transferable are the research findings : Read a qualitative nursing study. If a different investigator had gone into the field to study the same problem, how likley is it that the conclusions.

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate abdominal pain and distension

What specific physical exam can a provider perform at the point-of-care to further evaluate abdominal pain and distension in a child with sickle cell anemia.

  Your brewery produces bakersfield bland

Your brewery produces bakersfield Bland

  How will this affect her taxes

Victoria has a marginal tax rate 33%. She realizes that she neglected to include a $5,450 tax deduction. If she includes this $5,450 tax deduction on her tax

  Explain how a lockbox is used to minimize funds

Discuss the use of marketable securities with reference to temporary surplus cash.

  What is the OFC and final analysis

The company is considering operating a new driving range facility in Sanford, fl. In order to do so, they will need to purchase a ball dispensing machine.

  What is the effective annual interest rate

Maltz Landscaping has an average collection period of 33 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 5 percent discount. What is the effective annual interest rate on the financing from the factor?

  What is the current value of a face value bond

Consider a bond with a coupon rate of 8 percent that pays semiannual interest and matures in eight years. The market rate of return on bonds of this risk.

  What is the value of retirement plan

Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years?

  Explain why the purchasing power parity

Explain why the purchasing power parity (PPP) usually does not hold but the interest rate parity (IRP) does.

  What is the machine net cash flow

If Tank is actually forecasting a salvage (for capital budgeting purposes) of $5,000 after 6 years, what is the machine's net cash flow

  What is the present value of a payment in one year

What is the present value of a $290 payment in one year when the discount rate is 7 percent? (Round your answer to 2 decimal places.)

  Acquisition of general capital assets

The entire debt arising from the acquisition of general capital assets under a capital lease agreement should be reported as debt of the fund that accounts for the activities of the department or function using the leased asset.

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