What will the price be in five years and in fourteen years

Assignment Help Financial Management
Reference no: EM131050434

Anton, Inc., just paid a dividend of $3.25 per share on its stock. The dividends are expected to grow at a constant rate of 4.75 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock.

Requirement 1: What is the current price?

2. What will the price be in five years and in fourteen years? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

5 years= ?


14 years= ?

Reference no: EM131050434

Spot interest rates for maturities of one

Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 6.5% r2 = 7.0% r3 = 7.7% r4 = 8.5% What are the following forward rates, whe

Odd dividend policy-company has just paid dividend

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $10.35 per share and has announced that it will increase the dividend by $9.50 per share f

Securities is best after adjusting for tax and credit risk

You are given the following three money market securities: A US T-bill offering a quoted yield of 6.75%; A bank CD offering a quoted yield of 7.56%; A MA Municipal bond offeri

Define the capital asset pricing model

Why is it necessary to know about time value of money concepts? Why can’t you just make judgments about future cash flows based purely on the size of the cash flows? Define Fu

Effects of the insolvency on company-shareholders

There has been a major global crisis, and your company’s board of directors has announced that the company is going bankrupt. No one could have seen this one coming. As your c

The same risk offer an annual market return

Shaky Position, Inc. is unable to meet its next several coupon payments. The bonds have a face value of $10,000, will mature seven years from today, and have a 9 percent annua

Calculate the net present value of the proposed mine

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine

Estimate of the current stock price

Orwell Building Supplies’ last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate


Write a Review

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