Determining company current stock price

Assignment Help Accounting Basics
Reference no: EM13142473

Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?

Reference no: EM13142473

Questions Cloud

What are two cancers that occur predominantly in children : What are two cancers that occur predominantly in children(less than 13 years of age), and why is it thought that these cancers occur early in life?
What is the molecular mass of gas x : An unknown gas X effuses 1.65 times faster than C3H8. What is the molecular mass of gas X?
Complete the cost of goods sold section : The trial balance of Perine Company at the end of its fiscal year. Complete the cost of goods sold section (periodic system) for the year ending August 31.
Find smallest value of p for which owner will take risk : Construct a probability distribution table. (b) if p=0.4, find the expected net profit. (c) what is the smallest value of P for which the owner will take the risk to undertake this project?
Determining company current stock price : The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
Calculate the cost recovery deduction : Sam has, however, made an election to not have the uniform capitalization rules apply to the farming business. Sam does elect not to take additional first-year depreciation. Determine the cost recovery deduction for 2009.
Word paper in which you discuss and explain : write a 700 to 1050 word paper in which you discuss and explain the term social institution, as it applies to organized crime. Which empirical and speculative theories are most applicable when applied to organized crime and criminal behavior?
Which about the reasons the changes might have resulted : Choose one of the IFRS changes as well as a specific industry example; noting the connection between Rules and Principles-based Accounting, write a two-page report. which about the reasons the changes might have resulted in support of the goals o..
What is the total heat capacity of the calorimeter : Suppose that in changing samples, a portion of the water in the calorimeter weere lost. In what way, if any, would this change the heat capacity of the calorimeter?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the recomputed basis of property

Calculate the recomputed basis of the property. Calculate the amount of ordinary income under Section 1245. Calculate the Section 1231 gain.

  Compute the company current ratio

Locate the annual financial statements of a publicly held company on the Internet. Review the balance sheet and the accompanying notes to the financial statements.

  Carrying value-book value of the bonds

Using this information, with all other information the same, determine the carrying value [book value] of the bonds at June 30 of the current year?

  Employer in accordance with the adoption plan

They spent $15,000 in connection with the adoption, all of which was paid by the employer in accordance with the adoption plan. How much of the employer paid adoption costs must be included in their income?

  Prepaid expenses and accounts payable

A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2000 and $4000, respectively. T..

  What should be the loss recognized from the sale of machine

The JOhn Company purchased a machine on Nov 1, 2002, for 148,000. At the time of acquistion, the machine was estimated to have a useful life of ten years and an estimated salvage value of $4,000. JOhn has recorded monthly depreciation usiing the s..

  Investment in the aircraft

Management is having difficulty estimating the salvage value of the aircraft. To the nearest whole dollar how large would the salvage value of the aircraft have to be to make the investment in the aircraft financially attractive?

  Journal entries to record expenditure and amortization

Assume that at January 1,2012 the carrying amount of the patent on Celine Dion's books s $43,200. In January, Celine Dion spends $24,000 successfully defending a patent suit. Celine Dion still feels the patent will be useful until the end of 2019...

  Which one is not a main objective of financial reporting

Which one is not a main objective of financial reporting on SFAC 1?

  What consolidation worksheet entry would be made

when a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, what consolidation worksheet entry would be made?

  Problem related to compounded semi-annually

If I invest $40,000 0n January 1, 2010 in a savings account that earns interest of 8% compounded semi-annually. What will be the amount in the fund on December 31, 2015?

  Projects having payback period

Bonds uses a discount rate of 11 percent and wants projects to have a payback period of no longer than five years. Present value tables or a financial calculator are required.

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