What is the expected value

Assignment Help Finance Basics
Reference no: EM131387596

ABC Inc., is expected to pay an annual dividend of $2.2 per share next year. The required return is 19.9 percent and the growth rate is 5 percent. What is the expected value of this stock five years from now?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131387596

Questions Cloud

How should carvers estate be distributed : The codicil was witnessed by Roy White and Harold Brown. John Carver died September 1, 2009, and the will and codicil were admitted to probate. How should Carver's estate be distributed?
Producer who is attempting to maximize wealth : “A producer who is attempting to maximize wealth (or profit) will never knowingly set their output where the demand for their product is ‘inelastic.’” Refute or prove this statement. Does your answer depend on whether the producer is a price taker or..
How should the estate be distributed : In each instance, Edwin stated that he had signed the document but did not state that it was his will. Edwin returned to his office and placed the will in his safe.- Subsequently, Edwin died, survived by Kurt, his only heir-at-law. How should the e..
Best estimate of the stock current market value : ABC just paid a dividend of D0 = $2.5. Analysts expect the company's dividend to grow by 33% this year, by 24% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 16%. What is the best estimate of..
What is the expected value : ABC Inc., is expected to pay an annual dividend of $2.2 per share next year. The required return is 19.9 percent and the growth rate is 5 percent. What is the expected value of this stock five years from now?
What interest if any does mary acquire in blackacre : The validly executed will of John Dane contained the following provision: - What interest, if any, does Mary acquire in Blackacre?- What interest, if any, does Henry acquire in the oil business?
What are the critical issues or problems : A case is usually a "description of an actual situation, commonly involving a decision, a challenge, an opportunity, a problem or an issue faced by a person or persons in an organization." In learning with case studies, the student must deal with ..
Find the most reduced state diagram : (State Assignment) Given the next-state function of the finite state machine shown in Figure Ex. 8.11, use the implication chart method to find the most reduced state diagram.
What is the dividend yield : If D1 = $5.84 and P0 = $83.83, what is the dividend yield?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What are important considerations in selecting an investment

You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment. How will you invest your savings and what are important considerations in selecting an investment vehicle?

  Southwest technologys common stock is selling at 30 per

southwest technologys common stock is selling at 30 per share today. southwest just paid a 2 dividend. its dividend is

  Transaction of creating the dividend

Which of the following comes closest to the amount that Kelly gets to keep from this transaction of creating the dividend if the tax rate on capital gains is 20%?

  What is the effective cost of credit to worthington

How would I put that in a essay format? Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthington's commercial paper will be placed at a cost of $35,000. What is the effectiv..

  Evaluate the business risk and any debt-equity

Evaluate the business risk and any debt/equity decisions recently made for your chosen company.

  What is the required rate of return on a stock

Assume that the risk-free rate is % and that the expected return on the market is 13%. What is the required rate of return on a stock that has a beta of 0.7%?

  Find probability that none is related to a kidney problem

About 30% of hospital admissions for diabetic patients because of some kidney problems. In a sample of 10 diabetic admissions, find the probability that none is related to a kidney problem?

  Liability side of a bank balance sheet

2. Which accounts are most important and least important on the asset side of a bank's balance sheet?The rank order of assets by dollar volume appearing on U.S. bank balance sheets are as follows:

  You are going to be given 79000 in 15 years suppose the

you are going to be given 79000 in 15 years. assuming an inflation rate of 2.4 what is the present value of this

  Information about calculate future value

Calculate the future value of $1,000,000 when it is invested for 5 years at the interest rate of 5% under the following assumptions:

  Determine the present value of the mixed stream

Determine the present value of the mixed stream of cash flows using a 5% discount rate. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments?

  Comment on the liquidity of the two companies

Suppose you are comparing two companies that are in the same line of business.- Comment on the liquidity of the two companies. Which company has more risk of not satisfying its near-term obligations? Why?

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