Stock current value per share

Assignment Help Finance Basics
Reference no: EM131100957

Thomas Brothers is expected to pay a $2.2 per share dividend at the end of the year (that is, D1- $2.2 ). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, r is 18%. What is the stock's current value per share? Round your answer to two decimal places.

Reference no: EM131100957

Questions Cloud

Use your intelligence to explain how topics : How can we use some of the measurement methods we've learned this term to make better decisions in business and in life? Sometimes it's hard for students to draw the linkages between topics examined in quantitatively-oriented courses to the "real ..
Discuss how insertion sort and selection sort works : Pick one of the following sorting algorithms and discuss how it works, its main features including performance characteristics: Insertion Sort, Selection Sort, Bubble Sort, Heap Sort, Merge Sort, Quick Sort.
Determine the gain error : An inverting amplifier must provide an input impedance of approximately 10 k Ω and a nominal gain of 4. If the op amp exhibits an open-loop gain of 1000 and an output impedance of 1 k Ω, determine the gain error.
Plan to deposit an additional : You have $38,630.60 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $200,000. You expect to earn 11% annually on the account.
Stock current value per share : The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, r is 18%. What is the stock's current value per share? Round your answer to two decimal places.
Expected dividend per share : The dividend is expected to grow 11% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places
The chemical composition of soil varies with depth : The chemical composition of soil varies with depth. The article "Sampling Soil Water in Sandy Soils: Comparative Analysis of Some Common Methods" (M. Ahmed, M. Sharma, et al.,Communications in Soil Science and Plant Analysis, 2001: 1677-1686) desc..
Show a profit on trading activities : Businesses may fail through poor cash flow, even whilst their published accounts show a profit on trading activities. Critically evaluate why this might be the case
Value of martell minings stock : If D0=5 and r=9%, what is the value of Martell Minings stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the original issue price

A firm has $1,000,000 in its common stock account and $2,500,000 in its paid-in capital account. The firm issued 100,000 shares of common stock. What was the original issue price if only one stock issue has ever been sold?

  Calculate price per share required in a new public issue

Calculate the price per share required in a new public issue if the entire surplus generated by the new project is to accrue to the existing shareholders.

  What is the projected amount of fixed costs

A company is considering a project with a cash break-even point of 22,600 units. The selling price is $28 a unit, the variable cost per unit is $13, and depreciation is $14,000. What is the projected amount of fixed costs?

  How much should you pay for the bond

Assume that you have the opportunity to buy a 30 year, zero coupon, $60,000 bond. You determine that the yield on a comparable bond (comparable in terms of risk, liquidity, etc.) is 4.0%. How much should you pay (maximum) for the bond? Assume an e..

  Calculate return on equity using the dupont system

Calculate return on equity using the DuPont system

  You just bought a house and have a 150000 mortgage the

you just bought a house and have a 150000 mortgage. the mortgage is for 30 years and has a nominal rate of 8 percent

  If you received 6000 in rental income all of it received

assume you purchased a rental property for 50000 and sold it one year later for 55000 there was no mortgage on the

  Suppose that in recent years both expected inflation and

assume that in recent years both expected inflation and the market risk premium rm-rrf have declined. assume also that

  Calculate the cost of equity using the sml method

Calculate the cost of equity using the dividend growth model method.

  The following is a summary of performance data of fedex

the following is a summary of performance data of fedex over a three-year period in millions year1 year 2 year 3 sales

  Analyzing a portfolio you want to create a portfolio

analyzing a portfolio you want to create a portfolio equally as risky as the market and you have 1000000 to invest.

  Evaluate the accuracy of each of these methods

Sales of industrial vaccum cleaners at R. Lowenthal supply Co. over the past 13months are as follows: Sales ( $1,000s)/ month 11- Jan. 14- Feb. 16- march 10-april 15-may 17-june 11-july 14-august 17-sept. 12-oct. 14-nov. 16-dec. 11-jan.

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