What should the stock be worth after three years

Assignment Help Financial Management

Reference no: EM131984786

Declining products corporation produces goods that are very mature in their product life cycle. decling products is expected to pay a dividend in year 1 of $1.15, a dividend of $1.05 in year 2, and a dividivebd of $1.00 in year 3. After year 3, dividends are expected to decline at a rae of $2% per year. An approptiate required rate of return for the stock is 8% what should the stock be worth after three years - round your answer to 4 decimal places.

Reference no: EM131984786

Questions Cloud

Calculate cost per basic telephone system : BB210 Introductory Management Accounting Assignment. Calculate cost per Basic telephone system and Advanced telephone system

New hypermarket in mansfield : Extra Value Foods, announced plans to open a new hypermarket in Mansfield. It is expected that the store will attract shopper from the area.

What is the percentage change in price for zero coupon bond : What is the percentage change in price for a zero coupon bond if the yield changes from 7?% to 6.5%?

Rank the ten investments in order of desirability : FINC20018 - Rank the ten investments in order of desirability. Explain why you have ranked them in this way -Which investment of the ten would you select? Why

What should the stock be worth after three years : what should the stock be worth after three years - round your answer to 4 decimal places.

Create a rudimentary job simulator : You will create a rudimentary job simulator. This will be a time-based simulator which means each "step" in the simulation will represent a single time unit.

Pause for a moment a remember the age-old maxim : So whenever you're about to scoff, your snacks, pull out into traffic or click send, pause for a moment a remember the age-old maxim manners maketh man.

Weighted average implied by the two outstanding debt issues : Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues.

What is shelias recognized gain on the same sale : What is Shelia's realized gain on the sale of her prior residence for $275,000? . What is Shelia's recognized gain on the same sale?

User Account

All Pages