What should be the value of this stock

Assignment Help Finance Basics
Reference no: EM13290878

The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock?

Reference no: EM13290878

Questions Cloud

Explain how to produce a logig diagram for both designs : A circuit is needed to divide a 10 Hz signal down to 1 Hz. using only a 7493 4 bit counter produce a logig diagram for both designs , hook the clock input to a 10 Hz clock on the logic designer and hook the output clock to an LED.
The target capital structure for jowers manufacturing : The target capital structure for Jowers Manufacturing is 49% common stock, 10% preferred stock, and 41% debt. If the cost of common equity for the firm is 20.7%, the cost of preferred stock is 11.6%, and the before tax cost of debt is 10.8% what is J..
How many shares will be outstanding after the dividend : Assume the company issues a 10 percent stock dividend. How many shares will be outstanding after the dividend?
Determine rotational lossesand motor efficiency at full load : A 230V, 25hp, shunt DC motor draws an armature current of 90Aat full rated load. The armature resistance is 0.2 ohms and theshunt field resistance is 216 ohms. Determine the rotational lossesand motor efficiency at full load.
What should be the value of this stock : The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock..
Determine the armature-developed power pdev : A 600V, 150hp, DC series motor operates at it's full-ratedload at 600 RPM. The armature resistance is 0.12 ohms and the series field resistance is 0.04 ohms. The motor draws 200A at full load.
Explain what is density of air at 273 k and 1 atmosphere : Air is approximately 80% nitrogen and 20% oxygen by volume, what is density of air at 273 K and 1 atmosphere? And at a altitude of 2550 ft would density of air be higher or lower, why
What is the net present value of the project : The project has an initial cost of $5.2 million and produces cash inflows of $1.48 million a year for 5 years. What is the net present value of the project?
What is the discount rate applicable to division a : Management has told the manager of division A that projects in his division will be assigned a discount rate that is 2 percent less than the firm's weighted average cost of capital. What is the discount rate applicable to division A?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the eps before and after the repurchase

Your firm has 25 million shares outstanding and they trade at $ 30. Net Income this year will be $ 3 million. You have $ 15 million to use and you plan to buy-back shares.

  What is the appropriate cost of common equity

Sonderson Corporation is undertaking a capital budgeting analysis. The firm's beta is 1.5. The rate on six-month T-bills is 5%, and the return on the S&P 500 index is 12%. What is the appropriate cost of common equity in determining the firm's cos..

  Should the individual trade at the offer or bid rate

Evaluate if the individual sells the forward would rate would he receive from a bank for one year forward rate (Show the calculation for the forward rate and Should the individual trade at the offer or bid rate?

  What is the expected value of the rate of return

The most likely (with probability 80%) value is 5 years. Assume the heat exchanger has no salvage value at the end of its useful life.

  Find the value of depreciation change

Reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges, it had issued $4,000 of bonds that carry a 7 percent interest rate,

  What is the amount of donnas tax liability

What is the amount of Donna's tax liability if the stock is held for 11 months?

  Explanation of capital structure

How does the capital structure of a firm compare to the capital structure of an individual? In what ways are they similar?

  Evaluating dividend policy on wealth maximization

Can you please tell me what is Evaluating Dividend Policy on Wealth Maximization in businesses?

  What is the full effect of this purchase on bank deposits

What is the full effect of this purchase on bank deposits and the money supply if borrowers return only 90 percent of these funds to their banks in the form of transaction deposits?

  What is the wacc for the company

Preferred Stock and WACC The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?

  Should she subscribe to the agency

The initial charge for this service is $750, with an additional charge of $6 per individual report. Should she subscribe to the agency?

  Computation of firm''s weighted average cost

Computation of firm's weighted average cost of capital considering marginal tax rate and what is the firm's weighted average cost of capital.

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