What is the current value of a share CCSI stock

Assignment Help Financial Management
Reference no: EM13882095

CCS Inc. currently plays no dividends, but intends to pay a $12.00 per share dividend three years from today. However, CCSI expects earnings and dividends to decrease 5% annually thereafter. If the required rate of return for stocks with similar risk is 10%, what is the current value of a share CCSI stock? Please provide details on how answer was achieved.

Reference no: EM13882095

Questions Cloud

Describe the key initiatives currently underway at ach : Describe the key initiatives currently underway at ACH
Authoritative guidance for asset impairments under IFRS : Summarize the authoritative guidance for asset impairments under IFRS. Give at least two (2) examples of events that could cause an asset to be tested for impairment, and recommend the best method to determine the fair value of an impaired asset. Exp..
Whats the value of the stock under the perpetual ddm : A company pays a dividend of $1.95 and it’s expected to grow at 5.5% for the foreseeable future. Your required rate of return is 11.8%. What's the value of the stock under the perpetual DDM?
Advantages of standardizing the marketing mix worldwide : advantages of standardizing the marketing mix worldwide.
What is the current value of a share CCSI stock : CCS Inc. currently plays no dividends, but intends to pay a $12.00 per share dividend three years from today. However, CCSI expects earnings and dividends to decrease 5% annually thereafter. If the required rate of return for stocks with similar risk..
Both systems are to be depreciated straight-line to zero : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. System B costs $342,000, has a six-year life..
Determine what joel discovered when he did the bc analysis : Determine what Joel discovered when he did the B/C analysis. Was the general manager correct in concluding that location 2 was the best, all said and done?
Determine by the mccabe-thiele method : A gas mixture containing 55 mol% propane and 45 mol% propylene is to be separated into products containing 10 and 90 mol% propane by adsorption in a continuous, countercurrent adsorption system operating at 25°C and 1 atm. The adsorbent is silica ..
What is the standard deviation of the analysts profit : Assume a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 39%. What is the expected return (in dollars), and what is the standard deviation of the analyst..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the stocks coefficient of variation

One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns.

  What should the brand equity building focus on

Based on all of the information above, write an online branding proposal for Premier Portraits. Who specifically should Premier Portraits target with the new branding message? What product should Premier Portraits really offer to this market? What va..

  Break-even quantity

Shapland Inc. has fixed operating costs of $550,000 and variable costs of $35 per unit. If it sells the product for $75 per unit, what is the break-even quantity?

  Function of management based on structure of organization

Describe how the organization is structured. Include a copy of the organizational chart. Describe how managers perform the organization function of management based on the structure of the organization. Ensure one of the five types of structures as d..

  Investors were expecting larger increase

Dew Drop In, Inc. announces is quarterly dividend will increase from $3.80 to $4.00. After the announcement, the price of Dew Drop In, Inc.'s stock drops. The most likely explanation is that the stock market is a perfect market. investors were expect..

  Non constant growth valuation

A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 0.9, the ..

  Assigned change leadership roles and relationships

In "Assigned Change Leadership Roles & Relationships," the sponsor is typically -

  Cost of equity capital with the new capital structure

The company has zero debt in its capital structure. Its overall cost of capital is 9%. The firm is considering a new capital structure with 50% debt. The interest rate on the debt would be 4%. Assuming that the corporate tax rate is 34%, what would b..

  About the annuities-who is paid better

Annuities. A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5 years contract providing $4 million now and $2 million a year for 5 years. The interest rate is ..

  What is the expected return on the portfolio

You own a portfolio that is 38 percent invested in Stock X, 22 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 15 percent, and 12 percent, respectively. What is the expected return on the port..

  About the monthly payment

You want to buy a new sports car from Muscle Motors for $68,000. The contract is in the form of a 72-month annuity due at an APR of 6.75 percent. What will your monthly payment be?

  In terms of present value of future money

Assuming that Mr. Smith does not need money desperately, which would be the best decision for Hyun-Woo (in terms of present value of future money)? (at 8% discounted interest rate)

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