Determine the value of the company shares

Assignment Help Finance Basics
Reference no: EM131114154

Lama Company has paid the following dividends over the past years

Year div per share

1.00
1.05
1.12
1.20
1.29
1.40

The average growth of dividends for the past five years is expected to persist in the foreseeable future. You are required to determine the value of the company's shares after payment of the dividend of 2004.

First find the average rate of growth in dividend over last five years.

Reference no: EM131114154

Questions Cloud

What has been the biggest breakthrough that you have learned : What is the biggest issues confronting you now with Java or programming in general? What has been the biggest breakthrough or concept that you have learned thus far?
How these elements contribute to the central ideas of play : Review the stage directions and, in your discussion post, identify the most important aspects of the setting.Then, consider how these elements contribute to the central ideas of the play
How many gates would such a system require : Develop a two-dimensional addressing system using a 6-to-64 decoder, a 64-word×128- bit matrix, and 16-input multiplexers. How many gates would such a system require?
How would the results be used to make a diagnosis : Explain what physical exams and diagnostic tests would be appropriate and how the results would be used to make a diagnosis. List five different possible conditions for the patient's differential diagnosis, and justify why you selected each.
Determine the value of the company shares : The average growth of dividends for the past five years is expected to persist in the foreseeable future. You are required to determine the value of the company's shares after payment of the dividend of 2004.
How many records would you expect would be removed : A dataset has 1000 records and 50 variables with 5% of the values missing, spread randomly throughout the records and variables. About how many records would you expect would be removed?
Explain the implied volatility : Find the price of a six month european call option on a non-dividend paying stock with a strike price of 20 when the current stock price is 18, the risk free rate is 6% per annum and the volatility is 30 per annum. Use the Black scholes merton mod..
Describe the two families in the film : Describe the two families in the film (ie the names of the family, people in household, jobs held, current financial situation,etc) - Did race impact the families lives? Explain
Minimum average collection period : The minimum average collection period required to approve the cash discount plan is _________days?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Assume that the expected return on stocks is 12 the

assume that the expected return on stocks is 12 the standard deviation of stocks is 18 and the riskfree rate is 5.

  Information management system strategy

Evaluate the importance of a company having a robust information management system strategy. Recommend two (2) actions that a company may take in order to protect its information assets from potential disruption and loss.

  Estimating current price of stock

I recently took a company public by an initial public offering. I am expanding the business quickly to take advantage of an otherwise unexploited market.

  Effect of inflation on purchasing power of bond

ourteen years ago, the U.S. Aluminum Corporation borrowed $9.9 million. To sustain the original $9.9 million purchasing power, how much must the lender be repaid? (Hint: Multiply the loan amount by one plus cumulative inflation).

  Determine the projects operating cash flows in years 1 2

you have been asked by the president and ceo of kidd pharmaceuticals to evaluate the proposed acquisition of a new

  What course of action do you recommend to the secretary

As one of several advisors to the secretary of the U.S. Treasury. Based on these conditions, what course of action do you recommend to the secretary of the U.S. Treasury?

  Boisjoly watch imports has agreed to purchase 15000 swiss

boisjoly watch imports has agreed to purchase 15000 swiss watches for 1 million francs at todays spot rate. the firms

  How are corporate owners compensated

Describe the roles and the basic relationship between the major parties in a corporation-shareholders, board of directors and ceo-including their responsibilities and appointment is made for the latter two. How are corporate owners compensated?

  What is the exercise price of the conversion feature

An investor come to you and states that she has the option of converting her $2000 XYZ Corporate Bond into 20.50 shares of XYZ common stock. If the XYZ Bond pays a coupon rate of 5.25%, has a call price of 105, and matures in 7 years, what is the ..

  Examples of major ethical breaches

What are some examples of major ethical breaches in the recent past that have led to increased scrutiny in the field of financial reporting and analysis? Why are they important to a firm's stakeholders and the public at large?

  Evaluate the degree operating leverage

Evaluate the Degree Operating Leverage and the Degree Financial Leverage for the last two years. Did your company increased or decreased the overall risk?

  Identify derivatives investments foreign exchange

identify derivatives investments foreign exchange investments bank investments or a combination of them for the firms

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