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
Question: Unsatisfactory control of spare parts in a particular mechanical workshop is resulting in high carrying costs for some items and high stock-out costs for others. A st

how can I get?

Standard ratio analysis should be used to supplement the discussion of strength and weakness. The following ratios are most often used by practitioners: (a) Growth Rates: PEG R

Collection Policy The firm's collection policy may affect also our study.  The higher the cost of collecting accounts obtainable the lower the bad debt losses.  Therefore the

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?  market price of a share

Gloria the Investor Gloria is a seasoned sales manager with a very large international company. Although she has a great deal of experience with sales, she has little experience w

What is the Objectives of Listing Objectives of listing are mainly to: (i) Provide liquidity to securities. (ii) Mobilize savings for economic growth. (iii) Protect

Commercial Bank for Short Term Loans Purpose Why Commercial Banks Prefer To Lend Short Term Loans a) Long-term forecasts are not only difficult although also vague as unc

The information in the table below is available for a large fund-raising project. a. Determine the critical path and the expected completion time of the project. b. Plot the

Dividend Ratios 1. Dividend per shares (DPS) = Earnings to ordinary shareholders/ Number of ordinary shares Specify cash returns received for all share holders. 2. Di