User Account

All Pages

Calculate stock price of corporation

Assignment Help Finance Basics
Reference no: EM1360181

Philadelphia Corporation's stock recently paid a dividend of $2.00 per share (D0 = $2), and the stock is in equilibrium. The company has a constant growth rate of 5 percent and a beta equal to 1.5. The required rate of return on the market is 15 percent, and the risk-free rate is 7 percent. What is the stock price of Philadelphia Corporation?

A. $21
B. $14.28
C. $15
D. $11.05

 

Reference no: EM1360181

Questions Cloud

Assume that the price of asset x at close of trading : Assume that the price of Asset X at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day
Illustrate what is strategic portfolio management : Illustrate what is strategic portfolio management. What is the relationship between strategic portfolio management and project management.
Managing change depending on the situation : Explain explains how change and the change process may vary under certain situations. He also discusses how the process can be adjusted depending on the change and the situation.
Goals of applied behavioral analysis : One of the main goals of applied behavioral analysis (ABA) is to modify and change behaviors that are detrimental to an individual's growth, development, and/or functioning.
Calculate stock price of corporation : Philadelphia Corporation's stock recently paid a dividend of $2.00 per share, and the stock is in equilibrium. The corporation has a constant growth rate of 5% and a beta equal to 1.5.
Changes in the workplace : Changes in the Workplace - Show your experiences with changes taking place in a workplace
Why chain of custody must be followed in investigation : You are a computer forensics investigator for a law firm. The firm acquired a new client, a young woman who was fired. What is chain of custody and why must it be followed in investigations?
Illustrate what the equilibrium price and quantity : Illustrate what's the equilibrium price and quantity in the free market equilibrium. what's the best tax to impose on the power plant, why.
What is the fundamental resonant frequency : What is the fundamental resonant frequency of the air column if the velocity of sound in the air is 340 m/s.

Reviews

Write a Review

Finance Basics Questions & Answers

  Option contracts to minimize risk

Benefit from using option contracts to minimize risk.

  Prepare a statement of owners equity

At the Starting of September, Stanley Neal Started Neal's Investment Services, a firm that offers advice about investing and managing money. On September 30, the accounting records of the business showed the following data.

  Discuss the purpose of an audit in the public sector

What is the purpose of an audit in the public sector? Why is public financial management important?

  Refinancing of short-term debt

Medvedev Inc., issued $10,000,000 of short-term commerical paper during the year 2006 to finance construction of a plant. What would your answer be if, instead of a refinancing at the date above of issuance of the financial statements, a financing ..

  Question on computing ytm and ytc

Delta Industries has just issued callable ten-year, 8% coupon bonds with semi-annual coupon payments. What is an investor's Yield to Maturity? What is an investor's Yield to Call?

  Valuation of cash flows and purchase price of equipment

Valuation of cash flows and purchase price of equipment with changes in the exchange rates

  Explain decision making based on the npv

Explain Decision making based on the NPV and Profitable index and IRR criterion

  Create an amortization schedule

Johnson Enterprises borrowed $100,000 on July 1, 2003 to finance the purchase of a building. The mortgage needs payments of $3225 to be made at the end of every quarter for fifteen years.

  Question based on bond and stock valuation

"SRK Airport" authority issued a series of 3.4% 30 year bonds in February 2012. Interest rates rose substantially in the given years of the issue and made value of the bond decline.

  Future value of annuity exercise

Using the appropriate tabels find out how much will be accumulated in the fund on December 31, 2012 under each of the following situations:

  Describe what profit or loss would the investment banker

Describe what profit or loss would the investment banker incur if the issue were sold to the public at an average price of $25 per share?

  Explain what is the lowest fc

Explain what is the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd