What is the stocks expected price

Assignment Help Financial Management
Reference no: EM13909464

A stock is expected to pay a dividend of $2.00 the end of the year (that is, D1 = $2.00), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 1 years from today? Round your answer to two decimal places.

$:

Reference no: EM13909464

Questions Cloud

Find constant a and explain how this follows from the slln : There is a constant α such that limn→∞(1/n)[log2(Zn/Z0)] = α WP1. Find α and explain how this follows from the SLLN. Using (c), show that limn→∞ Zn = β WP1 for some β and evaluate β.
If the discount rate is infinite and zero : An investment has an installed cost of $535,800. The cash flows over the four-year life of the investment are projected to be $213,850, $230,450, $197,110, and $145,820. If the discount rate is infinite, what is the NPV?
What methodology, if any, is currently in use : Consider an organization you're familiar with. If you were benchmarking the logistical functions of this organization, what methodology would you use? What methodology, if any, is currently in use? Comment upon its appropriateness. Please support ..
What is the value of martell minings stock : Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 9% pe..
What is the stocks expected price : A stock is expected to pay a dividend of $2.00 the end of the year (that is, D1 = $2.00), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 1 years from today?
Calculate the average check per meal period : An owner invested $180,000 in a new family-style restaurant, of which $160,000 was immediately used to purchase equipment and $20,000 was retained for working cash. Calculate the average check per meal period that will cover all costs, including desi..
What is your current mortgage balance outstanding : Suppose you currently have a mortgage with 10 years remaining with annual payments (the next one coming in exactly one year) at a rate of 6%. The original mortgage amount was a 20-year mortgage for $1 million. What is your current mortgage balance ou..
Populate the graph with edges connecting concepts : Populate the graph with edges connecting concepts/classes as of the given statements above. You need to consider that these edges will be labelled by the predicate in the given statements
Show that for all sample functions except set of probability : Show that for all sample functions N(t, ω), except a set of probability 0, N(t, ω)/t 2/M for all sufficiently larget. Note: Since M is arbitrary, this means that lim N(t)/t = 0 WP1.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the amount of the firms ebit

Advantage First Corporation has sales of $4,059,350; income tax of $409,472; the selling, general and administrative expenses of $246,585; depreciation of $302,729; cost of goods sold of $2,415,280; and interest expense of $103,041. What is the amoun..

  What is your return assuming no dividends are paid

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,000 shares at $91 per share with an initial margin of 40 percent. One year later, the stock is selling for $99 per share, and you close out your posi..

  Explain the benefit of using flexible budgets

Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity and was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.

  What factors affect the cost of money

What factors affect the cost of money? Use at least one outside source. You may form your own opinions as well but support them with research. Production Opportunities- the returns available within an economy from investment in productive (cash produ..

  Why are equity investment returns typically more than bond r

Why are equity investment returns typically more than bond returns? A) Equities are riskier than bonds B) Bonds are riskier than equities C) Bonds pay interest payments   D) Both A & C

  Stock is expected to pay a dividend-calculate forward price

A stock is expected to pay a dividend of $2.20 per share in 1 months and in 4 months. The current stock price is $51, and the risk-free interest rate is 6% per annum with continuous compounding for all maturities. An investor has just taken a long po..

  Receive upon buying this mortgage-backed security

You are an institutional money manager looking to add some Ginnie Mae MBS to your portfolio. "At the current price of 113-10, the calculated cash flow yield of 3.4788% represents the return that an investor is guaranteed to receive upon buying this m..

  What must the beta of this stock be

A stock has an expected return of 14.4 percent, the risk free rate is 5.6 percent, and the market risk premium is 7.1 percent. What must the beta of this stock be?

  Suppose the firm uses the NPV decision rule

For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0 –$ 153,000 1 78,000 2 67,000 3 49,000 Requirement 1: At a required return of 9 percent, what is the NPV of the project?

  Weighted average cost of capital

The Black Bird Company plans an expansion. The expansion is to be financed by selling $32 million in new debt and $71 million in new common stock. The before-tax required rate of return on debt is 11.74% percent and the required rate of return on equ..

  What interest rate would legally have to be quoted

A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $31,000, the interest for the year will be $5,270. What interest rate would legally have to be quoted? What is the effective annual rate?

  What is amount of the dividend check the dawson couple

Jamie and Peter Dawson own 220 shares of Duke Energy Common stock. Duke energy's quarterly dividend is $0.28 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter?

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