Calculate the present value of stock

Assignment Help Finance Basics
Reference no: EM131015747

Outback Outfitters is expected to pay a dividend (D1) of $1.00 next year, with an expected constant growth in dividends of 5%. The required rate of return is 11%.

  • Calculate the present value of this stock.
  • What will be the new price of this stock if the discount rate rises to 12%?
  • What will be the new price of this stock if the discount rate falls to 10%?

Reference no: EM131015747

Questions Cloud

Netstack college has received a grant to wire : Netstack College has received a grant to wire all of its six buildings for 10/100 Ethernet. Four of the buildings contain classrooms and laboratories and will need to support 250 network connections each. One building is for administration and will n..
Discuss the distributions of principal : Create a complete amortization schedule for the car, using the information in questions 1 and 2.
How much work does the elevator do : An elevator is able to raise 9,800 N to a height of 37 m in 14 s. How much work does the elevator do? What is the elevator's power output?
Explain the purpose of maintenance intervals : Explain the purpose of maintenance intervals. Describe the objectives of an airline maintenance program.  Compare and contrast formal and informal training methods
Calculate the present value of stock : Calculate the present value of this stock. What will be the new price of this stock if the discount rate rises to 12%? What will be the new price of this stock if the discount rate falls to 10%?
New degree of operating leverage for output levels : The operating cash flow is $58,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of 16,400 units and 14,400 units? Please show steps.
What is the new degree of operating leverage : What is the new degree of operating leverage? Round answer to 3 decimal places. Please show steps.
What are international societal considerations : What should be scanned in the task environment?
Amount of the depreciation expense : The MACRS rates are .3333, .4445, .1481, and .0741 for years 1 to 4, respectively. What is the amount of the depreciation expense in Year 3 if the initial cost is $387,950?

Reviews

Write a Review

Finance Basics Questions & Answers

  Analysis of financial statements of limited

Select  a company  from  ASX website  and  Draft a report  incorporating  the following  points  in relation  to your selected  company. Describe  the core business  activity  of the company. Provide  full details  of its  different  activities  a..

  What is the expected value of the company in one year

What is the expected value of the company in one year, with and without expansion? Would the company's stockholders be better off with or without expansion? Why?

  Case study-missed opportunities

Read the case study titled "Missed Opportunities", located in the online course shell.

  Whats the probability of finding an employee with a wage of

1. whats the probability of finding an employee with a wage of between 1000 and 1100?2. whats the probability of

  What are the major issues in using per capital

What are the major issues in using per capital GDP or GNP as a country segmentation criterion?

  According to the chart that i found at trading economics

according to the chart that i found at trading economics the current government spending percentage in regards to gdp

  What is the concept of dead peasants insurance

the company uses the tax - free death benefit to pay off the policy loan and to mack the payment to the family if one was promised and then pockets the difference.

  Meeting of board of directors

Rick is preparing for a meeting of Board of Directors and is compiling notes in preparation. One of the Board of Directors is an Accountant and has been concerned with the Asset Projection that was part of Rick's planning for the growth expansion.

  What are the pre-tax profits from sales of course packs

Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $9, fixed costs to produce the packs are $200,000, and expected annual sales are 50,000 packs. What are the pre-tax profits from sales of course packs?

  The canadian government has once again decided to issue a

the canadian government has once again decided to issue a consol a bond with a never-ending interest payment and no

  What is the six-month forward exchange rate

The spot exchange rate is $1.35 per euro. If the interest rate is 1% in the U.S. and 3% in the euro-zone, what is the six-month forward exchange rate between the dollar and the euro?

  What is the appropriate discount rate for this project

What is the appropriate discount rate for this project -A colleague argues that the project should not be taken because it is risky and the firm can't afford to take risks in a bad economy

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