Assume the required rate of return on the stock

Assignment Help Financial Management
Reference no: EM131556055

What is the value of a stock that has just paid a divident of $4. The Dividend is expected to grow at 20% per year for the next 3 years and then is expected to be 5% thereafter. Assume the required rate of return on the stock is 14%.

Reference no: EM131556055

Questions Cloud

Observed returns for securities : Observed returns for Securities A and B in the last five years:
What were the time-weighted-dollar–weighted rates of return : what were the time-weighted (geometric) and dollar–weighted rates of return?
How many contracts should you enter : You manage a $10 million portfolio, all invested in equities; the beta for your portfolio is 0.70. How many contracts should you enter?
Forecast the firm additional funds needed : ABC is planning its operations and needs you to forecast the firm's additional funds needed (AFN).
Assume the required rate of return on the stock : What is the value of a stock that has just paid a divident of $4. Assume the required rate of return on the stock is 14%.
What are the two components of convertible bond value : Which will have the higher coupon rate? Why? What are the two components of convertible bond value?
An investor is only writing puts or buying calls : For a particular stock, an investor is only writing puts or buying calls.
Calculate the weighted-average cost of capital : Calculate the weighted-average cost of capital (WACC).
What amount are total assets expected to increase next year : ABC is anticipating growth in sales of 40% for year. By what amount are total assets expected to increase next year?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd