Using the constant growth formula

Assignment Help Financial Management
Reference no: EM13873679

Using the constant growth formula and the data above, what price would you estimate for Wal-Mart according to that model if the dividend was expected to grow by a constant 3%?

Reference no: EM13873679

Questions Cloud

The effective annual interest rate for this account : At the end of each year, for 20 years, I deposit $1000 dollars into an account. The effective annual interest rate for this account (called account 1) is 5%. At the end of each year, i take the interest I am paid from this account and invest it into ..
The dividends are anticipated to maintain growth rate : The next dividend payment by Wyatt, Inc., will be $3.30 per share. The dividends are anticipated to maintain a growth rate of 5.25 percent, forever. What is the current price of the stock if the dividend yield is 8 percent?
Dry air mass flow rates of the warm : A stream of warm air with a dry-bulb temperature of 40°C and a wet-bulb temperature of 32°C is mixed adiabatically with a stream of saturated cool air at 18°C. The dry air mass flow rates of the warm and cool airstreams are 8 and 6 kg/s, respectiv..
Consider the expectations theory : Consider the expectations theory (of the term structure) with a term premium. What is the interest rate on a 5-year bond today if the term premium for a 5-year bond is 2% and 1-year interest rates are expected to remain constant at their current leve..
Using the constant growth formula : Using the constant growth formula and the data above, what price would you estimate for Wal-Mart according to that model if the dividend was expected to grow by a constant 3%?
Prepare the journal entry to record : Prepare the journal entry to record the write-off for McKinney & Co.
Organization of the levels of the american court system : Detail the history and organization of the levels of the American court system
Firms expenditures on fixed assets-net operating capital : Maze Co. recently reported operating income of $6.45 million, depreciation of $1.22 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totalled $0.8 million. How much was its free cash flow, ..
Factors that lead to the effective management of projects : Describe the factors that lead to the effective management of projects and Explain how projects, programs, and portfolios help organizations coordinate their work and meet objectives

Reviews

Write a Review

Financial Management Questions & Answers

  Describe business intelligence

Distinguish among surveys, experiments and observational methods of primary data collections. Cite examples of each method. Define and give an example of each of the methods of gathering survey data. Under what circumstances should researchers choose..

  Explain what is the expected return of stock g

What are the expected returns of each of the four individual assets using CAPM if the line equations is plotted with an intercept of 3.0% (risk-free rate) and a market premium of 10.5% (slope of the line)? What is the expected return of stock G, H,..

  Economic state probability return

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (2 points) Economic State Probability Return

  Both annuities are based on annual effective interest rate

Sisi Huang received $12,000 from a lottery. She uses this money to purchase two dif- ferent annuities, each costing $6,000. The first annuity is a 24-year annuity-immediate paying $K per year, and the second is an 8-year annuity-immediate paying $2K ..

  What is the cost preferred stock financing

The preferred stock of gator industries sells for $35.66 and pays $2.74 per year in dividends. What is the cost preferred stock financing? How should this cost be incorporated into the NPV of the project being financed?

  Does this change have an impact on their decision

Recalculate the NPV assuming the machine press can only be sold for $45,000 at the end of year four.  Does this change have an impact on their decision?

  What must the beta of this stock be

A stock has an expected return of 14.4 percent, the risk free rate is 5.6 percent, and the market risk premium is 7.1 percent. What must the beta of this stock be?

  Based on an internal rate of return analysis

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $20,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year.  Show the internal rate of ret..

  Credit in the cash account

Posting a $600 debit as a $ 600 credit in the Cash account

  Find out the future -terminal values

At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent?

  Increased the importance of personal financial planning

There are at least three major areas that affect financial decisions. Life situations such as income, age, household size, and health. What are some of the social and economic factors that have increased the importance of personal financial planning ..

  Recapitalization-what is the stocks current price per share

Tapley Inc. currently has total capital equal to $10 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $3 million, and pays out 40% of its earnings as dividends. What is the stock's current price per share. Ass..

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