What will be the current value of a single share

Reference no: EM13280631

Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 10%?

a) $30.22
b) $24.00
c) $23.97
d) $34.29

Reference no: EM13280631

Questions Cloud

What is the maximum price he can pay for the car : Matthew wants to take out a loan to buy a car. He calculates that he can make payments of $4000 per year. If he can get a five - year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?

What will happen to the price of the bond : A $5000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5%. If interest rates falls and the yield to maturity decreases by 7.8% , what will happen to the price of the bond?

Calculate the resistivity of intrinsic si and room temp t : A Si wafer is doped with Na = 5x10^16 /cm^3 of acceptors. In equilibrium at T=330K calculate, list the following for the Si wafer: Eg (Energy gap), ni (intrinsic concentration), n,p - the free electron and hole concentrations

What will be the current value of a single share : Spacefood products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cos..

What will be the net cash flow for year one of this project : The firm has a tax rate of 30 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $57,000 at the beginning of the project. What will be the net cash flow for year one of this project?

What is the power delivered by a motor for this ascend : An elevator with a mass of 1000 kg, including passengers, is ascending at constant speed. What is the power delivered by a motor for this ascend

Probability that their first child will have a tail : What is the probability that their first child will have a tail and what proportion of their offspring is expected have achondroplasia?

What is the expected capital gain from the sale : Credenza Industries is expected to pay a dividend of $1.20 at the end of the coming year. It is expected to sell for $62.00 at the end of the year. If its equity cost of capital is 8%, what is the expected capital gain from the sale of this stock ..

User Account

All Pages