Write in the value with two decimal points

Assignment Help Finance Basics
Reference no: EM131419849

1. FUTUREDIV INC doesn't pay dividends now, but will pay a dividend of $3.2, 8 years from now and will increase dividends by 2.6% per year thereafter. If investors require a return of 13.6% on this stock, what is the value of the FUTUREDIV stock? Write in the value with two decimal points but no dollar sign or comma.

2. PREFERDIV INC's preferred stock pays a $2.93 dividend every quarter forever. If the stock currently sells for $36.69, what is the investors' required rate of return? Write in the value with 4 decimal points but no % sign. For example, if answer is 7.82%, write in 0.0782.

3. HYPERDIV INC is expected to pay the following large dividends in the next 3 years:

Year

Dividend

1

$1

2

$2

3

$4

After 3 years, the dividends will grow at 3% per year forever. If investors require a return of 9.3% on this stock, what is the value of the HYPERDIV stock? Write in the value with two decimal points but no dollar sign or comma

4.  ABC INC just paid a dividend of $2.48 and the dividends are expected to indefinitely grow at a constant 2.4% rate. If investors require a return of 13.5% from this stock, what is the value of the ABC stock? Write in the value with two decimal points but no dollar sign or comma.

5.  STARZ INC pays a constant dividend of $23 for next 12 years then will stop paying dividends forever. If investors require a return of 9.6% on this stock, what is the value of the STARZ stock? Write in the value with two decimal points but no dollar sign or comma.

Reference no: EM131419849

Questions Cloud

What is the apr of its nonfree trade credit : If a firm buys under terms of 3/15, net 45 but actually pays on the 20th day and still takes the discount, what is the APR of its nonfree trade credit?
Do you find that percentage plausible : A staff member thinks that the true rate is 5%. Given the confidence interval you found, do you find that percentage plausible?
Calculate the earnings per share : She wants to evaluate the firm's optimal capital structure. Currently, there are 6 million ordinary share outstanding and each share is valued at $5.00. Calculate the earnings per share for FY 2016 under the following scenarios:
Who will register for the offer : If the acceptance rate is only 2% or less, the campaign won't be worth the expense. Given the confidence interval you found, what would you say?
Write in the value with two decimal points : 1. FUTUREDIV INC doesn't pay dividends now, but will pay a dividend of $3.2, 8 years from now and will increase dividends by 2.6% per year thereafter. If investors require a return of 13.6% on this stock, what is the value of the FUTUREDIV stock? ..
What is the dollar cost of each financing arrangement : Establish a one-year line of credit for $2 million with a commercial bank. The commitment fee will be 1/2 percent per year on the unused portion, and the interest charge on the used funds will be 11 percent per annum. Assume that the funds are nee..
Explain what your interval means : Create a 95% confidence interval for the percentage of all auto accidents that involve teenage drivers.- Explain what your interval means.
Identify the incorrect statement concerning globalization : Identify the incorrect statement concerning globalization. _____ is consistent with the notion that an individual's right to do something may be restricted because it runs counter to "the good of society" or "the common good."
Explain the concept of hierarchy as it applied to power : Explain the concept of hierarchy as it applied to power and leadership in the ancient world. Are there any distinct differences between the operation of this concept as it applies in ancient Egypt and in ancient China or India? Explain and provide..

Reviews

Write a Review

Finance Basics Questions & Answers

  Compare and contrast the internal rate of return approach

Compare and contrast the internal rate of return approach and the net present value approach to capital rationing. Which is better? Why?

  When establishing the level of misstatement that is

public accounting firms are being implored to assess a companys reported earnings per share relative to the market

  Determine the payback period for the project

A project requires an initial outlay of $100,000, and is expected to generate annual net cash inflows of $28,000 for the next 5 years. Determine the payback period for the project.

  What are the differences between a primary offering

Describe an initial public offering (IPO). What are the differences between a primary offering and a secondary offering?

  Write an 350-400 word original response to the following

write an 350-400 word original response to the following question based on your knowledge of the function of financial

  Computation of savings with interest rate swaps on the

computation of savings with interest rate swaps on the borrowings.dell inc. wants to borrow pounds and virgin airlines

  Efficient markets hypothesis what are the implications of

efficient markets hypothesis what are the implications of the efficient markets hypothesis for investors who buy and

  Explain and discuss on investment plan

Explain and Discuss on investment plan and which option should Tiger Travel take with the first payment due one year from now

  Dividends are expected to grow

Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity. Dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant annual growth rate in years 4 to infi..

  Discuss the relationships between operating and combined

Discuss the relationships between operating, financial and combined leverage?

  Net cash flow for the current month

Allison expects her monthly cash inflow after taxes to be $3000. She also has the following monthly expenses: Rent, $750; student loan payment, $200; utilities, $150; food, $300; recreation, $600; car expenses, $200; clothing, $150. What is Alliso..

  What is the current yield for bond p

what is the expected capital gains yield over the next year for Bond P? For Bond D? Explain your answers and the interrelationship among the various types of yields.

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