Estimate the company per share stock price

Assignment Help Financial Management
Reference no: EM131326933

Assume that the company's dividends per share are projected to grow at 2% each year, its next year's dividends per share is at $1.20, and its cost of equity capital 5%. estimate the company's per share stock price. please show all the steps.

Reference no: EM131326933

Questions Cloud

Marketing survey to determine viability of the product : Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $138,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $593,000 p..
What is the company equity value and value per share : You are valuing a technology company whose enterprise value is $800 million. The company has no debt, but considerable employee options, 10 million in total. Based on option pricing models, you value each option at $6.67 per option. what is the compa..
What happens to enterprise value and equity value : You are valuing a company using probability-weighted scenario analysis. You carefully model three scenarios, such that the resulting enterprise value equals $300 million in Scenario 1, $200 million in Scenario 1, and $100 million in Scenario 1. What ..
The share price to move toward equilibrium : Assume the company's maket beta equals 0.8, the risk free rate is 5%, and th emarket return equals 8%, compute the companies cost of capital? What are the most important financial variables to be managed for the share price to move toward equilibrium..
Estimate the company per share stock price : Assume that the company's dividends per share are projected to grow at 2% each year, its next year's dividends per share is at $1.20, and its cost of equity capital 5%. estimate the company's per share stock price.
What was the value of ending inventory : Sprint Shoes Inc. had a beginning inventory of 9,400 units on January 1, 20X1. Sales for the year were 47,410 units at $40.60 each. Sprint Shoes uses LIFO accounting. What was the gross profit? What was the value of ending inventory?
Compute intrinsic value-current yield-capital gains yield : Consider a $5,000 par value 20-year 10% coupon BB-rated bond that pays out coupon payments quarterly. The bond is now being priced to generate an annual YTM of 9%. Compute the intrinsic value (or price), current yield and capital gains yield of this ..
Developer of advanced security systems : IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2016 you initiate discussions with IDX’s founder about the possibility of acquiring the business at t..
High demand for construction labor and? materials : Today a proposed community college is estimated to cost ?$29.9 ?million, which is ?$114 per square foot of space multiplied by 262,710 square feet. If construction costs are expected to increase by 19?% per year because of high demand for constructio..

Reviews

Write a Review

Financial Management Questions & Answers

  Describe a real company’s dividend policy

Describe a real company’s dividend policy and try to explain why it is preferable to other dividend policy. Please include reference links on where you found your information.

  Compute the current market value of this bond

A bond was issued 3 years ago at a coupon rate of 6%. Since then, interest rates have declined to 4%. The bond matures 20 years from today. Compute the current market value of this bond.

  Impact of major accounting-financial scandals

Discuss the impact of major accounting/financial scandals on investors' asset preferences. In your opinion how do the scandals affect foreign markets? Discuss two macro variables that affect changes in interest rates/or markets. If you watch these..

  How dollar cost averaging affects your investment portfolio

How dollar cost averaging affects your investment portfolio when living off the portfolio’s proceeds in retirement. How dollar cost averaging affects your investment portfolio when accumulating assets toward retirement. What QE is, and how it affects..

  The loan annual percentage rate

Mars Inc. recently borrowed $220,000 from its bank at a simple interest rate of 11 percent. The loan is for nine months and, according to the loan agreement, the interest should be added to the amount borrowed and the total amount to be repaid in mon..

  What is the relevant operating cash flow

Fairfax Paint operates stores in Virginia. The firm is evaluating the Vienna project, which would involve opening a new store in Vienna. What is the relevant operating cash flow (OCF) for year 1 of the Vienna project that Fairfax Paint should use in ..

  Basically based off of present value of all future dividends

A recent graduate was hired to lead a small public company. In an effort to increase the stock price of the company he proposed increasing the dividends of the company. He explained “since the stock price is basically based off of present value of al..

  Outstanding credit card balance

Chris has an outstanding credit card balance of $1438.59. His credit card has an APR of 23.99% and he would like to have a zero balance two years from now. How much should he pay each month to reach this goal?

  Combine a risky stock with a beta

You would like to combine a risky stock with a beta of 1.88 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the ..

  Debt to long-term capital ratio

A firm has a long-term debt–equity ratio of 0.55. Shareholders’ equity is $1.4 million. Current assets are $425,000, and total assets are $2.420 million. If the current ratio is 1.7, what is the ratio of debt to total long-term capital?

  What is the equivalent rate with semi annual compounding

An interest rate is 13.34% per annum expressed with continuous compounding. What is the equivalent rate with semi annual compounding? (Margin of error: +/- 0.01%)

  Increased by bank loan transaction-current assets-revenue

A company received $75,000 cash from a bank loan that must be repaid in three years. Which of the following items would be increased by this bank loan transaction? Current Assets, Notes Payable, Revenue.

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