What should the stock price be

Assignment Help Financial Management
Reference no: EM13939514

MMK Cos. Normally pays an annual dividend. The last such dividend paid was $2.25, all future dividends are expected to grow at a rate of 7 percent per year, and the firm faces a required rate of return on equity of 13 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $25 per share that is not expected to affect any other future dividends, what should the stock price be?

Reference no: EM13939514

Questions Cloud

What is the variable rate for airplane depreciation : What is the variable rate for airplane depreciation? The fixed cost? What is the cost formula for airplane depreciation? What is the variable rate for fuel? The fixed cost?
Best policies and practices in implementing an employee : Select a problem/topic of interest associated with your workplace or in an industry in which you would like to work (e.g., reducing transportation costs for a fleet of delivery trucks or determining best policies and practices in implementing an e..
How much work will be done rope is parallel to the road : A crate is moved by pulling the rope attached to it. It moves 10m on a straight horizontal road by a force of 100N. How much work will be done if. 1. the rope is parallel to the road. 2. the rope is making an angle of 30 with the road.
What is the contribution margin : What is the contribution margin - How many cupcakes must Jane sell in a year in order to break even and calculate the years to discounted payback of the initial investment.
What should the stock price be : If the firm just announced that the next dividend will be an extraordinary dividend of $25 per share that is not expected to affect any other future dividends, what should the stock price be?
Discuss the communication media choice models : Discuss the communication media choice models and explain the implications of each on media choice.
Show the free body diagram : A block of certain mass is on a rough horizontal surface is pulled by a force F horizontally. When it is moving at 4m/s^2 a) show the free body diagram and b) If the coefficient of friction is 0.25 does the block slides over the surface or not?
What minimum force is required to be applied on lower block : A block of mass 18kg is placed on another block of mass 52Kg on a smooth horizontal floor. What minimum force is required to be applied on the lower block to just to move them without loosing contact between one another?
Temporary staff with specific skills and certifications : AllSeasons negotiates contracts with business clients to provide temporary staff with specific skills and certifications for an agreed cost. Staff are hired for jobs such as bar attendant, bar useful, waiter, cook's assistant, room attendant, rece..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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