What is a fair value for bolwork stock per share

Assignment Help Finance Basics
Reference no: EM13834697

Bolwork Inc. is expected to pay a dividend of $5 per share next year. Bolwork's dividends are expected to grow by 3 percent annually. The required rate of return for Bolwork stock is 15 percent. Based on the dividend discount model, a fair value for Bolwork stock is $____ per share.

Reference no: EM13834697

Questions Cloud

What is the convertible bonds conversion premium : A $1,000 par value convertible bond has a conversion price of $50. It is currently selling for $1,120 despite the fact that the bond's coupon rate and the market rate are equal. The common stock obtained upon conversion is selling for $54 per share. ..
Accounting equation for transaction analysis : 1. A Using the accounting equation for transaction analysis Christopher Turner started a new business, Turner Gymnastics, and completed the following transactions during December:
What should a share of charlie company sell for : Charlie company is expected to grow at an annual rate of 6% indefinitely. The return on similar stocks is currently 11%. Charlie's board of directors declared a dividend of $1.85 yesterday. What should a share of Charlie company sell for?
What are the major tradeoffs in capacity planning : What factors enter into the choice of a value for the smoothing constant in exponential smoothing? What are the major tradeoffs in capacity planning
What is a fair value for bolwork stock per share : Bolwork Inc. is expected to pay a dividend of $5 per share next year. Bolwork's dividends are expected to grow by 3 percent annually. The required rate of return for Bolwork stock is 15 percent. Based on the dividend discount model, a fair value for ..
Write a research report on ms dynamics erp systems : Microsoft Dynamics is a collection of popular ERP system used by many organizations. Dynamics offer five primary products, each includes one or more model.
How many vats will be used : A machine cell uses 250 pounds of a certain material each day. Material is transported in vats that hold 25 pounds each. The cycle time for vats is 2.5 hours. The manager has assigned an inefficiency factor of 0.12 to the cell. The plant opera..
What is the sharpe index : A stock's average return is 11 percent. The average risk-free rate is 9 percent. The stock's beta is 1 and its standard deviation of returns is 10 percent. What is the Sharpe Index?
Distinguish between data and information : Distinguish between data and information

Reviews

Write a Review

 

Finance Basics Questions & Answers

  On september 8 defective goods with a selling price of 200

on september 5 de la hoya hotels buys merchandise on account from janet diaz company. the selling price of the goods

  Write in a short essay explain why people resist change due

write in a short essay discuss why people resist change due to uncertainty. include example to support your answer.

  What is the firm internal rate of growth

Winston Consulting has a return on assets of 16 percent, an equity multiplier of 1.75, and a dividend payout ratio of 60 percent. What is the firm's internal rate of growth?

  What will happen to the price of the bond

A $5000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5%. If interest rates falls and the yield to maturity decreases by 7.8% , what will happen to the price of the bond?

  Computing the probability of potential investment

Provide three factors that favor leasing some type of capital equipment, rather than buying it. (b) State two advantages of buying some capital goods, rather than leasing them.

  What is the projected ending cash balance at the end

The firm has monthly cash expenses of $160. What is the projected ending cash balance at the end of March? Assume every month has 30 days.

  Suppose that put options on a stock with strike prices of

suppose that put options on a stock with strike prices of 30 and 35 cost 4 and 7 respectively. how can the options be

  What is the sharpe index

A stock's average return is 11 percent. The average risk-free rate is 9 percent. The stock's beta is 1 and its standard deviation of returns is 10 percent. What is the Sharpe Index?

  Cisco systems had net income of 4401 billion and at year

cisco systems had net income of 4.401 billion and at year end 6.735 billion shares outstanding. calculate the earnings

  Research to develop a new computer game

Research to develop a new computer game.

  What is the yield to maturity to the bondholders

What is the yield to maturity to the bondholders?

  Sender about the cause of his or her concern

With this type of response, you analyze or teach the sender about the cause of his or her concern.

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