User Account

All Pages

What is the horizon value

Assignment Help Finance Basics
Reference no: EM131132282

Portman Industries just paid a dividend of $2.16 per share. Portman expects dividends to grow by 12% over the next year. The next year, the dividend is expected to grow at a constant rate of 2.4% per year.

The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information:

What is the horizon value?

54.33

35.59

53.05

103.22

Reference no: EM131132282

Questions Cloud

Balance of power established by the congress of vienna : What was the balance of power established by the Congress of Vienna? What role did France play in maintaining it? What role did Prussia and Russia play?
Would you agree with a qualified version of george''s claim : Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
What are types of crimes that are classified as white collar : Does it fit with what you know about white collar crime now? What are the types of crimes that are classified as white collar crime? How much of a factor is the media in white collar crime?
Why was he an advocate of conservatism : Who was Metternich? What was his opinion about nationalism and liberalism? Why was he an advocate of conservatism? What were some examples of his conservativebeliefs?
What is the horizon value : The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information: What is the horizon value?
Identify notable writers during the enlightenment : Choose one European nation. From that nation, identify three notable thinkers or writers during the Enlightenment, and briefly identify the significant works/ideas from each.
The role of vidal herrera becoming an entrepreneur : what were the precipitating factors that play in the role of Vidal Herrera becoming an entrepreneur?- does his growth strategy make sense for the type of business he operates?
What is the expected dividend yield for the stock today : The risk free rate is 3%, the market risk premium is 3.6% & the beta is 1.10. The market is at equilibrium, using the above information: What is the expected dividend yield for the stock today?
Propose idea that could lower cost for maintaining programs : The cost of software maintenance is normally greater than all the other phases of the Life Cycle. Propose one idea that could lower the cost for maintaining the programs.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the call price for an option if the stock is

1. a put option sells for 1.20 per share. the current stock price is 20.00 and the exercise price is 19.00. what

  Applied statistics in business and economics

What are the steps espoused by Applied Statistics in Business and Economics (or the instructor) for formal hypothesis testing? Explain why the sequence is important.

  Merton enterprises has bonds on the market making annual

merton enterprises has bonds on the market making annual payments with 14 years to maturity and selling for 972. at

  Compensation expense for the year

Karl Stick is president of Stock Corporation. He also owns 100% of its stock. Karl's salary is $120,000. At the end of the year, Karl was paid a bonus of $100,000 because the firm had a good year.

  Forecast a revenue growth rate

Leahy Enterprises reports 2013 and 2014 total revenues of $80 million and $92 million respectively. If we expect prior growth to persist, we would forecast a revenue growth rate of:

  Revenues and other operating costs

Foxy Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no new working capital would be requir..

  How is market risk measured for individual securities

How is market risk measured for individual securities AND how is it calculated?

  What is the npv of accepting the lockbox agreement

What is the NPV of accepting the lockbox agreement? (Round your answer to 2 decimal places)

  Should the investor purchase abc

Given that ABC stock has a required or expected rate of return of 15%, the average market return is 11% and the interest yield on 10-year US Treasury Bonds is 4%, should the investor purchase ABC? Show your work to explain why or why not.

  Credit card liabilities and fraud

When a credit card is lost or stolen, it can be used until its owner reports it as missing. This loss of one's credit card can result in fraud and therefore, being aware of the legalities that follow is important. This assignment addresses the leg..

  Valuing stocks-paying dividends good for shareholders

Increasing growth may require investment from firm and money spent on investment can't be employed to pay dividends. On one hand, cutting the firm's dividend to raise investment will raise the stock price if and only if the new investment has the ..

  Rosa company stock price is 5888 and recently paid a 200

rosa company stock price is 58.88 and recently paid a 2.00 dividend. this dividend is expected to grow by 25 for the

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd