+1-415-670-9189
info@expertsmind.com
Required return on the stock-what is the current share price
Course:- Financial Management
Reference No.:- EM13942962




Assignment Help
Assignment Help >> Financial Management

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.40, $16.40, $21.40, and $3.20. Afterwards, the company pledges to maintain a constant 6.00 percent growth rate in dividends, forever.

Required:

If the required return on the stock is 9 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Current share price:




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Chuck Brown will receive from his investment cash flows of $3,175, $3,460, and $3,850 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment
A convertible bond has the following features (rounding allowed in answers): The bond may be converted into how many shares? What is the current value of the convertible as a
Ethier Enterprise has an unlevered beta of 1.25. Ethier is financed with 45% debt and has a levered beta of 1.55. If the risk free rate is 6% and the market risk premium is 6%
The informal economy refers to commercial activities that occur at least partly outside a governing body’s observation, taxation, and regulation. What threats does the informa
Skip Towne goes into Frank’s Friendly Furniture Sales and purchases a living room set and bedroom suite for $1,950 total. Skip has to make payments of $100 per month for 36 mo
When the assumptions of Modigliani and Miller’s Irrelevance Hypothesis regarding corporate capital structure are relaxed so that they are more consistent with real-world condi
What are the most important things you are taking from this course that will shape your future and enable you to make a positive difference? All components of this Assignment
CAPM AND REQUIRED RETURN - Calculate the required rate of return for Manning Enterprises assuming that investors expect a 3 5% rate of inflation in the future. The real risk-f