Average firm in the industry, Financial Accounting

Suppose that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry, but it has just successfully done some R&D work that leads you to expect that its earnings and dividends will rise at a rate of 50% [D1 = D0(1 + g) = D0(1.50)] this year and 25% the following year, after which growth should return to the 4% industry average. If the last dividend paid (D0) was $2.25, what is the value per share of your firm's stock?

 

Posted Date: 3/30/2013 1:32:35 AM | Location : United States







Related Discussions:- Average firm in the industry, Assignment Help, Ask Question on Average firm in the industry, Get Answer, Expert's Help, Average firm in the industry Discussions

Write discussion on Average firm in the industry
Your posts are moderated
Related Questions
working with par value and common value and preferred value in accounting help

Ask question #Minimum 10010 qestions words accepted#

The forecast income statements are as follows: WORKINGS Sales = 50000 × 1·12 = $56000000 Variable cost of sales = 30000 × 1·12 × 0·85 = $28560000 Fixed cost of sa


Purchased used truck for 8,000 ,paying 2,000 cash and the balance on account

The following table represents the demand for a product for the years 1990 to 2007: a.    Develop a linear trend line and use it to predict the quantity demanded for 2008,

Equation illustrates the relationship in between PVA n , A, K and n. So manipulating this a bit: We find that A = PVA n [(k (1 + k) n )/((1 +k) n - 1)] [(k (1 + k) n )/(

Received 10,000 contribution from bill london in exchange for common stock What 2 accounts are used

Suppose a risk neutral agent has $100,000 today that he wants to save for one year. Compare the following two savings plans. Bank A offers a standard savings account with 4% p.a

GOODS AT BRANCH MARKED DOWN, OR MARKED UP BY AN ADDITIONAL AMOUNT If goods at the branch are not selling well, branch could be authorized by the Head office to mark-down the good