Market risk premium , Financial Accounting

A company presently pays a dividend of $2 per share, D0 = 2. It is estimated that the company's dividend will enhance at a rate of 17% percent per year for the next 2 years, then the dividend will enhance at a constant rate of 7% thereafter. The company's stock has a beta equivalent to 1.8, the risk-free rate is 6.5 percent, and the market risk premium is 4 percent. What is your estimate is the stock's present price?

 

Posted Date: 3/30/2013 1:43:45 AM | Location : United States







Related Discussions:- Market risk premium , Assignment Help, Ask Question on Market risk premium , Get Answer, Expert's Help, Market risk premium Discussions

Write discussion on Market risk premium
Your posts are moderated
Related Questions
The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as f

Bankrupt person A bankrupt is a person against whom an adjudication order has been made by the court primarily on the grounds of his insolvency. Any person (other than a body c

The dividend yield as well as capital growth for 2004 must be calculated with reference to the 2003 end-of-year share price. The dividend yield is 0·56% (100 × 2·8/500·8) as well a

IF I HAVE A LOAN AND ACCRUED INTEREST .THEN ACCRUED INTEREST GOES ON WHICH SIDE- DEBIT OR CREDIT ?

Question: State of the Economy Probability of state occurring IBM Return (%) ATT Return (%)

The intestate leaves no spouse but children The net estate devolves upon the surviving children and is divided equally between them. If any child has not, at the time of intest

Part A   The contribution margin income statement of Nice Cup Company for 31 December 2011 follows: Nice Cup Company   Contribution Mar

Terms of Trade Doe Ltd must negotiate agreed terms of trade with its customers in order to encourage prompter payment. These terms of trade may tender discounts for early paymen

Fund Accounting - Method of ACCOUNTING and presentation whereby LIABILITIES and ASSETS are grouped according to the purpose for that they are to be used. Normally used by governmen

AMALGAMATIONS Two sole traders and a partnership,two or more partnerships or a sole trader and other partnerships may combine or join together to forma a single partnership. The