What is the intrinsic value of deployment specialists stock

Assignment Help Financial Management
Reference no: EM13878576

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 8.0%, what is the intrinsic value of Deployment Specialists stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM13878576

Questions Cloud

What are the advantages cole han likely realized : What are the advantages Cole Han likely realized as a result of having real time data available?
What is the duration of a bond with three years : What is the duration of a bond with three years to maturity and a coupon of 8.2 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your final answer to 5 decimal places. (e.g., 32.16161)).
What is your estimate of the stocks current price : A company currently pays a dividend of $1.75 per share (D0 = $1.75). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 8% thereafter. The company's stock has a beta of..
What is the current price for berkshire hathaway stock : What is the current price for Berkshire Hathaway stock, class A. What kind of signal do you think it sends? Has the class A stock has ever had a stock split?
What is the intrinsic value of deployment specialists stock : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 8.0%, what is the intrinsic value of Deployment Specialists sto..
Probability distributions of expected future returns : Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -14% -35% 0.2 3 0 0.3 16 22 0.3 22 27 0.1 39 40. Calculate the expected rate of return, rY, for Stock Y (rX = 14.50%.)
Suppose that a company wants to upgrade its legacy system : Suppose that a company wants to upgrade its legacy system, but cannot afford to completely replace it. Describe two approaches that can be used.
Zero coupon bond issue that matures-value of risk-free bond : McLemore Industries has a zero coupon bond issue that matures in two years with a face value of $39,000. The current value of the company’s assets is $22,200, and the standard deviation of the return on assets is 50 percent per year. Assume the risk-..
Why might it be important to have internal documents : Why might it be important to have internal documents produced as an output of the accounting information system?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Options pertaining to home mortgage financing

You are given the following options pertaining to home mortgage financing: A) Loan amount $200,00, fixed rate 3.5%, 30 year term, closing costs = $7,000. APR _______________ B) Loan amount $200,000, Fixed rate 3.25%, 30 year term, closing costs = $11..

  Funds to pay cash for the entire expansion project

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $148.17 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for..

  What is the implied annual storage cost

The spot rare for soybeans is 1320 and the 6 month forward price is 1350 the risk free is 4% the lease rate on the 6 month soybean contract is 0.35%. What is the implied annual storage cost if the cost is continuously paid and proportional?

  How does net working capital affect

How does net working capital affect the NPV of a 5-year project if working capital is expected to increase by $30,000 and the firm has a 16% cost of capital?

  Find the common present value of the two annuities

Al is given a fifteen-year annuity with end-of-year payments. The first payment Al receives, precisely one year from the date he is given the annuity, is for $100, and then subsequent payments decrease by 4% annually.

  What are some legitimate drivers of a low PE-multiple

What are some legitimate drivers of a low PE-multiple? Why? What are some legitimate drivers of a high PE-multiple? Why?

  Statements about the payback method

Which of the following statements about the "payback method" is true?

  Example of when the underlying circumstances are favorable

Consider each of the following situations independently of each other. For each of the situations, provide one example of when the underlying circumstances may be such that the observed trend is unfavorable, and one example of when the underlying cir..

  What is the operating cash flow for the first year

The Sports Club wants to expand its facility. The expansion will require $438,000 in building improvements that will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $203,000 in additional sales..

  Effectively implement monetary policy

Why is it important for the economies of Europe to converge in order for the European Central Bank (ECB) to effectively implement monetary policy for Europe?

  What was the average annual growth rate of salary

12 years ago, Maria's annual salary was $36,892. Today, she earns $85,736. What was the average annual growth rate of Maria's salary? Round the answer to two decimal places in pecentage form. Show work please.

  What is the operating cash flow or ocf

The Losers company has sales of 19,500, costs of 17,300, depreciation expense of 1650 and interest expense of 1460. If the tax rate is 35 percent, what is the operating cash flow or OCF?

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