Finding the price of the stock

Assignment Help Managerial Economics

Reference no: EM1373028

Firm A is paying a current dividend of $2.09 per share, with a 4 percent growth expectation into the future. The three month T-Bill, a risk-free asset, has an yearly yield of 3.5%, the S&P has a 14% return, and the beta of the company is 1.5. Whats the stock's value today? if your valuation is correct, and if the stock was selling $20.31 how could you profit from it?

Reference no: EM1373028

Questions Cloud

Compute expected dollar return : Assume that a person won Florida lottery and was offered a choice of 2-prizes: $500,000 or a coin-toss gamble in which he or she would get $1 million.

Technology impact on social institutions : What is the nature and extent of impact of technology on social institutions and individual lives? To what degree is this impact beneficial and to what degree is it harmful?

Manage change in organisation : Prepare an organisational change strategy based on low investment and maximum impact policy which will insure that core competencies are kept while a rapid reduction in staff and payroll are effected.

Your former college roommate calls you as well as asks : Your former college roommate calls you as well as asks to borrow $10,000 therefore the he can open a pizza restaurant in his hometown

Finding the price of the stock : Firm A is paying a current dividend of $2.09 per share, with a 4 percent growth expectation into the future. The three month T-Bill, a risk-free asset, has an yearly yield of 3.5%,

Explanation of field of sociology : An explanation of the field of sociology is needed because many students go through their undergraduate education without really understanding what sociology is all about

What info seems to be common to all of the sites you visited : What info seems to be common to all of the sites you visited? What did you imagine to find on the sites? Is there other info you were looking for that you did not find? Be specific

Show the stages of new product development : Explain the stages of new-product development with respect to Jenny Wood and her flavored cream with coffee. Write two paragraphs on what you imagine would she have done in these stages?

Information related to job descriptions : Important information related to Job Descriptions - Explain what are some of the reasons your organization or the one you are familiar with should review and revise job descriptions?

User Account

All Pages