Find the intrinsic value of a common stock

Assignment Help Finance Basics
Reference no: EM1352606

1.Find the intrinsic value of a common stock that last paid a quarterly dividend of $.03 if there is no expected growth in dividends and your required rate of return is 10%.

2. What if dividends are expected to grow at a rate of 6% per year indefinitely.

 

Reference no: EM1352606

Questions Cloud

Erikson psychosocial stages : Describe and explain Erikson's psychosocial stages.
What is the instantaneous power due to that force : An initially stationary 2.0 kg object accelerates horizontally and uniformly to a speed of 20 m/s in 1.9 s. (a) In that 1.9 s interval, how much work is completed on the object by the force accelerating it.
Java-s ability to derive new fonts from existing ones : Find out where on your system these font libraries are located. When you do, please specify the operating system and the location (folder/directory) where you found them. Discuss Java's ability to derive new fonts from existing ones.
Challenge of standardizing employee hiring : Explain how are these management challenges similar to challenges encountered by organizations that accommodate employee diversity.
Find the intrinsic value of a common stock : Find the intrinsic value of a common stock that last paid a quarterly dividend of $.03 if there is no expected increament in dividends and your required rate of return is 10 percent.
Description of biological and environmental factors : Can someone help me with a description of biological and environmental factors that can influence native and second language acquisition?
Essential elements of performance management systems : Management Questions - Can you discuss with examples, one of the essential elements of performance management systems?
Language development of children : In light of what we have discussed, thus far, in the course (e.g. attention, memory, schemas, etc) , what factors do you the language development of children?
Compute the overhead cost per unit : Vid-saver, Corporation, has five activity cost pools and two products a budget tape rewinder and a deluxe tape rewinder.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of amount to be invested each year

Computation of Amount to be invested each year for a target future value and Net Present Value of alternate investment options.

  Solve the problem on wacc

Finding the WACC: Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is 35 percent.

  Valuation techniques-mergers and acquisitions

What are some of the valuation techniques commonly used in Mergers and Acquisitions? Compare and contrast the valuation techniques common to Mergers and Acquisitions activities.

  Computation of depreciation expense

Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense

  Description of present value of growth opportunities

Next year's earnings are estimated to be $6.00. The company plans to reinvest 33% of its earnings at 12%. If the cost of equity is 8%, what is the present value of growth opportunities?

  Make journal entries to record transactions

On the 1st December 2011, Betty, Alvin & Yogee started a watch trading company, Baywatch Pvt. Ltd. with a paid up capital of $150,000 to be subscribed equally by the three (3).

  Explain the advantages and the disadvantages of funding

Andy Rexford had started his custom embroidery business in his garage with just one, two-head equipment & an old computer. From this humble beginning, Custom Stitches had grown into a full-time family business with sales of more than $750,000 a year.

  Stocks and bonds-gulf coast fisheries

The common stock of Gulf Coast Fisheries currently sells for $72 per share. What return did investors who owned the company's stock earn during the past year?

  Investment and inheritance

The owners of a firm approach their controller and describe that they have recently inherited a large sum of money. The owners ask controller whether they should invest money into the firm or into the stock market.

  Lower bound for the price of a two-year european call

What to the nearest cent, is the lower bound for the price of a two-year European call option on a stock when the stock price

  Dividend payment and open-market repurchase process

What are the dividend payment process and the open-market repurchase process?

  Computation of dividend based on dividend growth model

Computation of dividend based on dividend growth model and what is the expected dividend per share for each of the next 5 years

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