What should the market price of the stock be

Assignment Help Finance Basics
Reference no: EM131890846

ABC Company's common stock is expected to pay a $2.50 dividend in the coming year. If investors require a 16% return and the growth rate in dividends is expected to be 8%, what should the market price of the stock be? Round to two decimal places.

Reference no: EM131890846

Questions Cloud

Investment to accumulate enough money to pay for the ring : What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?
What are the firm accounts receivables turnover : Blue Air Inc., has net sales of $783,000 and accounts receivables of $167,000. What are the firm's accounts receivables turnover?
Describe john graunts contribution to epidemiology : Write a short essay describing John Graunt's contribution to epidemiology.
Analysts are predicting dividends to grow : Analysts are predicting dividends to grow by $0.18 per year over the next five years.
What should the market price of the stock be : If investors require a 16% return and the growth rate in dividends is expected to be 8%, what should the market price of the stock be?
Common stock value-market value of lawrence shares : Common stock value—Variable growth. Lawrence? Industries' most recent annual dividend was ?$1.45 per share. The market value of Lawrence's shares is..
Calculate the yield to call : The bond has a call feature that allows the issuer to call the bond after 6 years for a price of $1200. Calculate the yield to call.
Define unemployment rate and labor force participation rate : Define unemployment rate and labor force participation rate and understand how they are computed. Identify the three types of unemployment
Used as the initial cash flow for this building project : Uptown Furniture purchased a corner lot 5 years ago at a cost of $670,000. What amount should be used as the initial cash flow for this building project?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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