Calculate the current stock price, Finance Basics

The Bim-Bom Company is expected to pay a dividend of $3.10 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.00% per annum.  The company's beta is 1.45, the market risk premium is 4.20%, and the risk-free rate is 3.75%.  What is the company's current stock price?

Posted Date: 2/25/2013 2:29:51 AM | Location : United States







Related Discussions:- Calculate the current stock price, Assignment Help, Ask Question on Calculate the current stock price, Get Answer, Expert's Help, Calculate the current stock price Discussions

Write discussion on Calculate the current stock price
Your posts are moderated
Related Questions
Debenture Finance A type of long term debt raised after a company sells debenture certificates to the holder and raises finance in return. The term debenture has its source fr

Stardusts has 1 debt issue outstanding.  The debt matures on August 15, 2017, and has a 6.25% coupon.  Coupons are paid semiannually.  The bond is priced to yield 1.61% compound se

Discuss business taxes and their importance in financial decisions

Important Points for Shareholders and Creditors 1. In raising capital, the borrowing firm will constantly question the financial securities in form of preference shares

At t = 0, a 3-year, 7% coupon corporate bond with face value $1,000 is trading at a credit spread of 15%. The risk free rate is constant and equal to 4% for all maturities. The rec


should be provied on a centralised or a decentralised basic?

Assume IBM pays out all earnings as dividends. Today is t = 0 and IBM just paid a $2 dividend on $2 of earnings. The market expects dividends will grow each year by 5% until t = 4

i have the information given but i am having trouble getting the income statement done correctly

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad s