The appropriate rate for pharasalus'' stock

Assignment Help Finance Basics
Reference no: EM131030229

Pharsalus inc. just paid a dividend of 2.14 per share.  This dividend is expected to grow at a rate of 3.4% per year forever. The appropriate rate for Pharasalus' stock is 10.3%.  What is the price of the stock?  I have the answer but am confused as to how it was found, the formula used is D0* 1+g/ks-g, the correct answer is $33.47 but I come up with $32.07, what am I doing wrong?

Reference no: EM131030229

How ethical principles can address organizational issues

Write a 750- to 1,050-word paper describing how ethical principles can address organizational issues. Include the organization you selected and discuss the following with re

Computing current, working capital, and eps ratios

The following information are taken from the financial statements of Prone, Inc. as of the end of the year 2007. The information are in alphabetical order.

Raising business capital

Assume that you are financial advisor to a business. Describe the advice that you would give to the client for raising business capital using both debt and equity options in

Counterparty risk and aggregate risk

Write a review of the attached article, "Clearing, Counterparty Risk, and Aggregate Risk." Explain the key points that the author was trying to communicate. The review shoul

Find unlevered beta

El Capitan Foods has a capital structure of 40 percent debt and 60 percent equity, if its tax rate is 35%, and its beta (leveraged) is 1.25. Based on the Hamada equation,

Explain what was the impact of near failure of bear stearns

What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets? What actions did the Federal Reserve and the Treasury Department t

How would you determine what accounted for differing outcome

How would you determine what accounted for the differing outcomes? Were there inherent differences in the characteristics of the groups that influenced the varied outcomes?

Economic policy-international finance

From the first e-Activity, explain whether you believe it is U.S. consumers or policy makers who affect the money supply the most. Provide a rationale for your response.


Write a Review

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