What would be the estimated current price of this stock

Assignment Help Financial Management

Reference no: EM131547612

Echo Foxtrot’s Corp’s dividend is currently $2.75 per share. From corporate reports investors estimate that the stock’s dividend will grow by a constant rate of 3.5% per year. The required rate of return (i.e., the rate on alternative investments) is 11.0%. What would be the estimated current price of this stock?

Reference no: EM131547612

Questions Cloud

What would be the increase in value of company after loan : what would be the increase in the value of the company after the loan?

The present value of the new drug : What is the present value of the new drug if the interest rate is 11% per year? The present value of the new drug is

MACRS Schedule What is the NPV of the project : PUTZ has a 40 percent tax rate, and the required return on the project is 12 percent. MACRS Schedule What is the NPV of the project?

Use the wacc as the required return for project : Use this information to compute the company’s WACC and then use the WACC as the required return for this project.

What would be the estimated current price of this stock : What would be the estimated current price of this stock?

Higher offers raise costs : Higher offers raise costs: Opposing view While the deplorable incident on United didn’t involve an airline selling more seats than were available on the plane.

What is sustainable rate of growth : The total asset turnover is 1.77 and the debt-equity ratio is .60. What is the sustainable rate of growth?

Considered to be the risk free rate of interest : In financial literature this rate is considered to be the “risk free rate” of interest,

Operating activities section of its statement of cash flows : Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows.

User Account

All Pages