Market is in equilibrium, Finance Basics

You are taking an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1=2.00). The stock has a beta of 0.9. The risk-free rate is 3.0%, and the market targeted return is 9.0%. The stock's dividend is targeted to grow at some constant rate g. The sock presently sells for $28 a share. Suppose the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?

Posted Date: 3/18/2013 9:02:54 AM | Location : United States







Related Discussions:- Market is in equilibrium, Assignment Help, Ask Question on Market is in equilibrium, Get Answer, Expert's Help, Market is in equilibrium Discussions

Write discussion on Market is in equilibrium
Your posts are moderated
Related Questions
Comparison between Modern and Traditional Methods Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose

FASB Assignment

Types of Partners 1. General Partners -Unlimited active and liability in participation in partnership activities. 2. Limited partners - Limited liability in the management of

Explain about the Internal Rate of Return Internal rate of return (IRR) is the rate of discount that makes the present value of all the revenues (cash flows) from the invest

Term Structure of Interest Rates The term structure of interest rate give details the relationship between the term to maturity and interest rates and the differences between

discuss the meaning and advantage of captive insurance

Advantages of Investment in Shares 1. Income in form of dividends When you contain shares of a company then you become a part-owner of such company and hence you will be

Credit Standards A firm may follow a stringent or a lenient credit policy. The firm subsequent of a lenient credit policy tends to sell on credit to customers on extremely lib

what are the qualitative factors to be considered when deciding on product mix

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo