What value do you place on the stock today

Assignment Help Finance Basics
Reference no: EM132509546

After finishing your first finance class, you decide to start your own investment plan. Your first stock to purchase is McDonald's (MCD). You are confident enough to project next quarter's dividend as $1.00. However, you are unsure of future dividends, so you just assume they will grow at 0.50% per quarter going forward each year. If you want a 15.00% APR return (quarterly compounding) on your investment, what value do you place on the stock today?

Reference no: EM132509546

Questions Cloud

Prices for a 6-month aud-usd forward contract : Given the following information, as a market dealer, how will you quote bid and ask prices for a 6-month AUD/USD forward contract?
What will the entry to assign overhead include : Department W shows 402 machine hours for the period. The overhead rate is $5 per machine hour. What will the entry to assign overhead include?
Code of ethics and conscious capitalism : Pick one of the following terms for your research: code of ethics, conscious capitalism, corporate social responsibility (CSR), culture, ethical dilemma
How many units were transferred out during june : 11700 units started into production, and 540 units in ending Work in Process that are 40% completed. How many units were transferred out during June?
What value do you place on the stock today : If you want a 15.00% APR return (quarterly compounding) on your investment, what value do you place on the stock today?
What will be the impact on annual company net income : sales in future years will be 10,000 units per year. IF company decides to BUY screens from outside supplier, what will be impact on annual company net income?
Equivalent annual annuity of the gsu-3300 : The UGA-3000 produces incremental cash flows of $29,865.00 per year for 9 years and cost $126,092.00. The firm's WACC is 7.10%.
Implementation plan for business : What does the strategy, mission, and organizational structure say about the company? What are the company's short-term and long-term goals?
What is the maximum cash offer kkr : What is the maximum cash offer KKR should make if the projected synergies were worth $9 billion?

Reviews

Write a Review

Finance Basics Questions & Answers

  Question 1at the beginning of 20x2 dahl ltd acquired 8 of

question 1at the beginning of 20x2 dahl ltd. acquired 8 of the outstanding common shares of tippy ltd. for 400000.nbsp

  How will you use the information or insight in the future

What does your money personality say about you (do you think this is accurate?). How will you use this information or insight in the future?

  Equity free cash flow model

Is it true or false when something in the equity free cash flow model, if the value is for the net debt is negative

  Analyze the underlying social-psychological

Analyze the underlying social, psychological, and cultural forces that impact safety and security considerations in public sector human resource management.

  Calculate financial ratio for assessing fiscal effort

You have been asked to perform financial condition ratio analyses for two communities, Thriftyville and Myopica, based on data culled from each of their CAFRs.

  What is the yield to maturity of the par bond

What is the yield to maturity of the par bond?

  What is the effective annual interest rate on this lending

what is the effective annual interest rate on this lending arrangement?

  What will be the percentage change in the share price of abc

ABC Inc. is an all-equity firm with no debt that is exempt from paying any taxes. The firm has CAD$100 thousand of assets (e.g. cash). It also expects to generate additional free cash flow of CAD$50 thousand per year into perpetuity starting from nex..

  Calculating the effective interest rate on loan

A borrower has a 30 year fully amortizing FRM, with a $300,000 balance, 4.5% rate. There is a 3% prepayment penalty on this loan if it is repaid before 5 years.

  Trading cost per sale or purchase of marketable

Effective annual rate on marketable securities to be 4.6 percent per year, and the trading cost per sale or purchase of marketable securities to be $33.00

  Compute the npv

Kent will provide $470,000 per year in cash flow (after tax income plus depreciation) for the next 25 years. The discount rate is 13%.

  Calculate gross margin and total contribution margin

The following data has been provided by the Evans Retail Stores, Corporation, for the first quarter of the year:

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