Calculate the current price of stock

Assignment Help Corporate Finance
Reference no: EM1345995

If XYZ Company has a growth rate of 4%, a required rate of return (rs) of 11.5%, a most recent dividend paid of $5.00, a beta of 1.25 and the risk free rate of return is 3%, what is the current price of XYZ stock?

Reference no: EM1345995

Questions Cloud

Compute the certainty equivalent of his bet. : Compute the certainty equivalent of his bet. Calculate the Arrow-Pratt measure of absolute and relative risk aversion.
Find the value of preferred stock : XYZ Company issued common stock that had a required rate of return of 12 percent, the stocks beta is 1.75, next dividend is expected to be dollar 2.50 & the risk free rate of return is 5 percent.
What is the work completed on the man : what advantage might there be in using two identical capacitors in parallel connected in series with another parallelpair, rather than using a single capacitor.
Determining minimum size of control bus : Determine the minimum size of the control bus?
Calculate the current price of stock : If XYZ Corporation has a growth rate of 4 percent, a required rate of return (rs) of 11.5 percent, a most recent dividend paid of $5.00.
Foreign currency gain or loss exchange rate : Which of the following combinations correctly states the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses?
Program to compute pearson correlation coefficient : Write down a program to compute Pearson correlation coefficient by using parallel loop templates from Intel Threading Building Blocks library (TBB).
Discuss benefits & drawbacks of accumulating cash balance : Discuss the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects do dividend policy have on this type of decision?
Show the organizational change communication : Was this communication method effective and what would have been the best way to communicate the change to the employees and why?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Prepare the journal entries on the appropriate dates

Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split and Fill in the amount that would appear in the stockholders' equity section for Klein Corporation at December 31, 2002.

  Evaluate what is the financial break-even level

Evaluate what is the financial break-even level for the project and what is the accounting break-even level for the project?

  Financial statement analysis by ratio analysis

Financial statement analysis by ratio analysis of given data and Which company has the higher profit margin and Which company has the higher investment turnover?

  Prepare a report on apple inc

Executive summary -  A brief summary introduction focused on important analytical results

  Find materials price variance

The Litton Corporation has established Standards as follows:

  Multiple choice questions on managerial finance

What yearly rate of return would Grandma Zoe need to earn if she deposits dollar 1,000 per month into an account starting one month from today in order to have a total of $1,000,000 in thirty years ?

  Explain how does the price of these bonds

Explain how does the price of these bonds today compare to the issue price - market rate of interest on these bonds

  Evaluate what is the net income for the year

Common stock increased by $197 and retained earnings decreased by $123 and evaluate what is the net income for the year

  Find net unrealized loss

Sun Corporation had investments in marketable equity securities costing 650,000 on June 30, year 2. Sun Corporation decided to hold the investments indefinitely and accordingly reclassified.

  Evaluate the value of her position at maturity

Evaluate the value of her position at maturity and using the quotes on Euro futures and calculate the value of her position at maturity

  Describe how the free cash flows approach can produce

Describe how the free cash flows approach can produce valuations of firms when they are expected to generate negative free cash flows over the next five years.

  Private and leveraged buyouts

The benefits and difficulties of going public is an area worthy of consideration. While it seems that the ultimate aim of every small company is to grow large enough to one day be public,

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