Computing the stock price

Reference no: EM1364322

The growth rate for McDonalds is expected to be 10% for one year. After that, the dividend rate is expected to grow at a rate of 6% indefinitely. McDonald's shareholders require a rate of return on equity equal to 11%. The last dividend the company paid was $2.20. How do I calculate the current price of the stock?

Reference no: EM1364322

Questions Cloud

Find kinetic energy of ball at the highest point of motion : find out kinetic energy of ball at the highest point of motion.

How decrease in production of other items decreases supply : As demand goes up, so does price. The decrease in production of other items decreases supply, and raises their price.

Pricing strategy in a health care organization : Describe a pricing strategy in a health care organization for one of its services or products (e.g., a pharmaceutical drug or a medical device).

Explain and identify what factors you would examine : Explain and Identify what factors you would examine in your research and provide a rationale for your choice

Computing the stock price : The growth rate for McDonalds is expected to be 10 percent for one year. After that, the dividend rate is expected to grow at a rate of 6 percent indefinitely.

What you would recommend based on this data : write down ten results from the polls that indicate something interesting about the relative strength of the parties. Write a letter to a presidential candidate explaining what you would recommend based on this data.

Accounting - theoretical and practical questions : What is meant by the net realizable value for accounts receivable? What is aging of accounts receivable, and how is it used to account for uncollectible accounts? How is the accounts receivable turnover computed? What information does this ratio prov..

Find the average acceleration of the bullet through boat : What thickness of board (calculated to 0.1 cm) would it take to stop the bullet, suppose that the acceleration through all boards is the same.

Elucidate how this shift affect investment-interest rate : This might be interpreted as an upward shift in the consumption function. Elucidate how does this shift affect investment and the interest rate.

User Account

All Pages