According to constant growth dividend model

Assignment Help Financial Management
Reference no: EM13766946

The Black Bear Company just paid an annual dividend of $5.98. If you expect a constant growth rate of 8% percent, and have a required rate of return of 12.65 percent, what is the current stock price according to the constant growth dividend model (Gordon model)?

Round the answers to two decimal places.

All the work has to be shown!

Reference no: EM13766946

Questions Cloud

Prepare the report evaluating the alternatives : Prepare the report evaluating the alternatives and a recommended course of action. Use ratio analysis to support your evaluations and recommendation - projected cash shortfall was for six or nine months rather than three months?  Explain.
The person''s nutrition needs : What recommendations would you make to create a healthier life for this person?
Unit cost of the good coats : Assume that spoilage loss is charged to all production during August. What would be the unit cost of the good coats produced on Job 501?
Write paper on sexual assault : Research one of the following programs: Domestic Violence, Sexual Assault, Child Abuse, Elder Abuse and Juvenile Delinquency
According to constant growth dividend model : The Black Bear Company just paid an annual dividend of $5.98. If you expect a constant growth rate of 8% percent, and have a required rate of return of 12.65 percent, what is the current stock price according to the constant growth dividend model (Go..
Calculate the tax liability using the tax rate table : An example of how to calculate the tax liability using the tax rate table and the tax rate formula for a taxpayer with taxable income of $55,000, filing status married filing jointly.
What must the expected return on the market be : A stock has an expected return of 10.5 percent, its beta is 1.15, and the risk-free rate is 5 percent. What must the expected return on the market be? (Do not round intermediate calculations and round your final answer to 2 decimal places.
What product market did you choose for data to represent : What product market did you choose for data to represent and at which price and quantity does marginal cost nearly equal marginal revenue without exceeding it? Highlight this point on your graph
Management of cybersecurity : Submit a list of five cybersecurity breach case studies. For each breach, write a brief statement covering the following points:

Reviews

Write a Review

Financial Management Questions & Answers

  What are the net cash flows of the project for the years

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life.

  Describe the product life cycle for managing products

Describe the product life cycle as a useful tool for managing products after they have been introduced to foreign markets.

  What was its basic earning power ratio

x-1 corp's total assets at the end of last year were $405,000 and its ebit was 52,500. what was its basic earning power (bep) ratio?

  Discounted payback period for these cash flows

An investment project has annual cash inflows of $9,000, $8,500, $8,000, and $7,300, and a discount rate of 10 percent. If the initial cost is $23,700, the discounted payback period for these cash flows is _______ years.

  Bankruptcy costs born by bond holders in case of bankruptcy

A company has a zero-coupon bond outstanding, with face value 1,000 and a 3 year maturity. The bond is risky with a beta of 0.7. The risk free rate is 2% and the market risk premium is 6%. There are two equally likely scenarios at maturity:

  Wall street journal assignment on international financeuse

wall street journal assignment on international financeuse a recent issue of the wsj and go to the currencies table to

  What is the expected rate of return on the portfolio

You own a portfolio that has $2500 invested in Stock A and $3500 in Stock B. If the expected returns on these stocks are 10% and 16%, respectively, what is the expected rate of return on the portfolio?

  What is the value of the swap

A company enters into a $35 million notional principal interest rate swap. What is the value of the swap?

  Ordinary annuity for a graduation present

Danielle Salomon invests in a 10-year ordinary annuity for a graduation present. She contacts her bank and tells them to open an account and automatically deposit $500 at the end of the first 5 years, and $1000 at the end of the remaining 5 years.

  As a speculator in the financial markets

As a speculator in the financial markets, you notice that for the last few minutes Swiss Francs are being quoted in New York at a price of $0.5849 and in Frankfurt at $0.5851.

  Calculate the finance charge and monthly payment

Zachary Porter of Highland Heights, Kentucky, is contemplating borrowing $10,000 from his bank. The bank could use add-on rates of 6.5 percent for 3 years, 7 percent for 4 years, and 8 percent for 5 years. Use Equation 7.1 to calculate the finance ch..

  Jaedan industries has the following account balances as of

jaedan industries has the following account balances as of december 31 2010 found on page 64 amp 65 of the text. the

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