Estimate of the stock current price

Assignment Help Finance Basics
Reference no: EM131071859

A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.8, the risk-free rate is 3.5%, and the market risk premium is 6%. What is your estimate of the stock's current price? Round your answer to the nearest cent.

Reference no: EM131071859

Which elements of deangelos balance sheet are affected

calculated pension expense for its underfunded pension plan as follows: Required: Which elements of DeAngelo's balance sheet are affected by the components of pension expens

What is the yield curve

Please use finance theory and terminology to explain the main points of the article and what is the yield curve looks like today and write-up should be no more than 2 pages a

List your estimate for g2 and explain your reasoning

The third step is to estimate a second stage (also called the stable stage) growth rate in dividends, g2, for use in the Two-Stage DDM. Your estimate for g2 should not be

Why should an organization conduct monitoring activities

Management is legally responsible for establishing and maintaining an adequate system of control. Discuss the implications of this obligation, and discuss how management dis

The asset report of the organization

The debentures were completely subscribed and the cash were rightfully gotten. Plan money book, pass the fundamental diary sections and set up the asset report of the organiza

Compounding of interest-present-future value of investment

Explain how annuities affect TVM problems and investment outcomes with the impact of the following items listed below - this does not have to be exstensively long

Calculate the following exchange rates zar and usd

Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): The current ZAR spot rate in USD that would have been forec

What is this grand prize really worth

A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? U

Reviews

Write a Review

 
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