What value do you place on the stock today

Assignment Help Financial Management

Reference no: EM131897982

After finishing your first finance class, you decide to start your own investment plan. Your first stock to purchase is Walgreen’s (WAL). You are confident enough to project next year’s dividend as $1.00. However, you are unsure of future dividends, so you just assume they will grow at 5.00% per year going forward each year.

If you want a 15.00% return on your investment, what value do you place on the stock today?

Reference no: EM131897982

Questions Cloud

Analyze the local impact of global public administration : Select one (1) real-world policy issue and provide a description of the issue.? Analyze the major costs and major benefits of the issue.?

Briefly describe the programs requirements : Briefly describe the program's requirements. Describe the approach/structure of program.What classes/functions were used?

Compute a z-test for a proportion : For each of the scenarios listed below, select the appropriate test and write the null and alternative hypotheses to be used in the test.

Service pistol shooting accuracy : Assume that we are estimating 2 different police officers' service pistol shooting accuracy. The first officer practices almost daily year round.

What value do you place on the stock today : If you want a 15.00% return on your investment, what value do you place on the stock today?

What is the npv of investing in this technology : Assuming a discount rate of 20%, what is the NPV of investing in this technology?

What was the power of the test : Now suppose you find that the gestational length in African American women is actually 38.5 weeks. What was the power of the test with a = 0.05.

Intrinsic value is placed on stock at higher growth rate : Nixon Inc. currently pays $1.95 per share in dividends on its common stock. What intrinsic value is placed on the stock at the higher growth rate?

Members of greek life organizations : Researchers are concerned about the binge drinking behaviors at a local university among members of Greek life organizations.

User Account

All Pages