What do investors expect stock to sell for at end of year

Assignment Help Financial Management

Reference no: EM131022678

A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of return on the market is 20%.

Reference no: EM131022678

Questions Cloud

Write a term paper about capitalism and gender role : Write a term paper about Capitalism and gender role: the effect of capitalism on female role in social and professional sphere.

Accounting and auditing enforcement releases : Access the "Litigation" section of the SEC's website at www.sec.gov/litigation.shtml. Click on "Accounting and Auditing Enforcement Releases." Click on "AAER-3234" filed January 20, 2011. Read the release and the related SEC Complaint. Summarize t..

Problem regarding the direct labor hour : The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed overhead rate was $11 per direct labor hour and the variable overhead rate was $6.36 per direct labor hour.

Calculate materiality level for audit assignment : You have recently been appointed external auditor of the entity. You are assisting your Audit Manager in planning for the audit of the entity's financial statements - calculate materiality level for audit assignment.

What do investors expect stock to sell for at end of year : A share of stock is now selling for $155. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of re..

Calculate the atomic radius of an iridium atom : Iridium crystallizes in a face-centered cubic unit cell that has an edge length of 3.833 Å. Calculate the atomic radius of an iridium atom. Calculate the density of iridium metal.

Compute the npv and the irr : 1. Compute the NPV and the IRR for each investment. 2. CONCEPTUAL CONNECTION Explain why the project with the larger NPV is the correct choice for Skiba.

Create title page a bibliography of the article : Create title page a bibliography of the article in proper APA Format. Find a scholarly article and Working paragraph by paragraph (and sentence by sentence if necessary), write an outline of the article.

Would it still float on water : Sodium metal (atomic weight 22.99 g/cm3) adopts a bodycentered cubic structure with a density of 0.97 g/cm3. Use this information and Avogadro's number (NA = 6.022 X 1023) to estimate the atomic radius of sodium.

User Account

All Pages