Computing share price in a year

Assignment Help Finance Basics
Reference no: EM1330915

A share of stock sells for $35 today. The beta of the stock is 1.2, expected return on the market is 12%. The stock is expected to pay a dividend of $0.80 in one year. If the risk free rate is 5.5%, what will the share price be in one year?

Reference no: EM1330915

Questions Cloud

Performing business functions of computer operations : What skills are needed to perform the business functions of computer operations, systems development, and technical support?
Either tenants occupy rent controlled buildings : Either tenants occupy rent controlled buildings with a customers surplus deserve to live there.
Explain why should a government be concerned with pricing : Explain why should a government be concerned with the pricing of products that a company transfers.
Print design can be classified as good design : Find the factors that determine whether or not a print design can be classified as good design?
Computing share price in a year : A share of stock sells for $35 today. The beta of stock is 1.2, expected return on market is 12%. The stock is expected to pay a dividend of $0.80 in one year.
Find out the number of times a string is present : How to use Java classes to find out the number of times a string is present in another string.
Explain how does global intellectual property laws affect : Explain how does Global Intellectual Property Laws affect Telecommunication industry economic growth.
Leadership style of past or present organization : What type of leadership style do you believe would be most effective in your past or present organization?
Create a program to read this list of prices : Wrtie down a program to read this list of prices and the sales table and calculate total dollar sales for each salesperson and the total dollar sales for all salespersons.

Reviews

Write a Review

Finance Basics Questions & Answers

  Analysing characteristics of derivative markets

Analyse characteristics of derivative markets, by focusing on credit default swaps (CDS).

  Calculation of yield to maturity on bond with given data

Calculation of yield to maturity on bond with given data and The bonds had a coupon rate of 4.5%

  Computation of net present value and return on investment

Computation of net present value and return on investment and Create a template like the attachment or use the template however just remember to use the numbers given in the assignment

  Calculation of computation of projected cash flows

Calculation of Computation of projected Cash flows, NPV on Salvage Value Change & Sales (Units) Change using Graphs.

  Determine expected payment

Determine expected payment

  Computation of break even points

Computation of break even points - how large can his fixed operating costs be if he is to meet his profit target and what is his breakeven level of sales at the level of fixed operating costs determined.

  Computation of share price

Computation of share price and What is one share of this stock worth to you today if the appropriate discount rate is 14%

  Describe decision making based on npv of capital project

Describe Decision making based on NPV of capital project and calculate the present value of the salary differential for completing the certification pro-gram

  Determining time value of money concepts

The IF for the future value of annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be?

  Computation of net present value

Computation of Net present Value of the project and the decision making and what is the meaning of the computed net present value figure

  Explain and discuss on investment plan

Explain and Discuss on investment plan and which option should Tiger Travel take with the first payment due one year from now

  Calculation of ebit and sensitivity analysis

Calculation of EBIT and Sensitivity analysis and What is the operating cash flow for a sensitivity analysis using total fixed costs

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