What will the price be in three years and in fifteen years

Assignment Help Financial Management

Reference no: EM13728687

Patience, Inc., just paid a dividend of $2.95 per share on its stock. The dividends are expected to grow at a constant rate of 5.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

Requirement 1:

What is the current price?

Requirement 2:

What will the price be in three years and in fifteen years?

Reference no: EM13728687

Questions Cloud

Price one should pay to produce a yield rate : A bond with a par value of $1000 has annual coupons at the end of each year for 10 years. The initial coupon rate is 7% and each coupon is 3% greater than the preceding coupon. The bond is redeemed for $1200 at the end of 10 years. Find the price one..

Describe market share and market position : Describe market share and market position. Explain why price fixing, price discrimination, resale price maintenance, pricing below cost, and unit pricing are concerns that customers should be aware of in today's society

What is a supply chain : The success of any supply chain depends on the framework of the organization. The framework of an organization identifies strategic challenges that were critical to the organization's existence in the past and are also critical to its future growt..

Foster employee motivation-group cohesion among employees : When reviewing the descriptions of the work environments, identify elements that appear to foster employee motivation and group cohesion among employees.

What will the price be in three years and in fifteen years : Patience, Inc., just paid a dividend of $2.95 per share on its stock. The dividends are expected to grow at a constant rate of 5.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

What is the after tax cash flow from the sale of this asset : Consider an asset that costs $635,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $125,000. If the relevant tax rate is 35..

Synthesis of diverse concepts : Ensure that this assignment is done by the same expert that did the previous orders given above to ensure better understanding of the entire project for effective quality delivery and proper alignment.

Recalculate the payment based on a repayment term : Use a rate of 3.95% for a 30 year term. This is the APR. Assume you are making a down payment of 10%, so you will borrow 90% of the purchase price you selected. Calculate the monthly principal and interest (P&I) payment required if the loan is financ..

Calculate economic order quantity : An appliance for less is a local appliance store. It costs the store $2.4 per unit annually for storage, insurance act. To hold microwave in their inventory. Sales this year are anticipated to be 632 units. Each order costs $21. The company is using ..

User Account

All Pages