Compute a fair price of this stock

Assignment Help Business Economics
Reference no: EM1357337

A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, Compute a fair price of this stock.

 

 

Reference no: EM1357337

Questions Cloud

How macroenvironment affect individual firms : Changes in the macroenvironment affect individual firms and industry through the microeconomic factors of demand, production, cost and profitability.
Journal entry of petty cash : A company established a petty cash fund of $100 on September 1. On September 15, the petty cash fund was increased to $125 in total. Record the above transactions in general journal form.
Human resources- workforce mangement and development : Human Resources- Workforce mangement and development - choice for a workforce management and development strategy
Determine which ratios measures organization liquidity : Determine which of the following ratios measures an organization's liquidity also find which of the following ratios would tell an investor about the profitability of the organization?
Compute a fair price of this stock : A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, Compute a fair price of this stock.
How much heat flows through window per minute : What happens to the resistance of copper wire after dunking it in liquid nitrogen? and what happens to the resistance of a carbon resistor when you dunk it in liquid nitrogen.
Write first four strings in lexicographic enumeration : Consider the language L = L1 ∩ L2, where L1 = {ww^R : w ∈ {a, b}* and L2 = {a^n b*a^n: n ≥ 0}. Write the first four strings in the lexicographic enumeration of L?
Explain the level of significance : Explain At the 0.05 level of significance is there evidence of a difference in the daily customer count based on the price of a small coffee
Elucidate three political philosophie of redistributing wage : There has been much political discussion about redistributing income. These ideas are not new. Name and elucidate the three political philosophies of redistributing income. Do you believe any of them have merit.

Reviews

Write a Review

Business Economics Questions & Answers

  If one yr later the marketplace interest rate increases

If one yr later the marketplace interest rate increases by 5% also they sell the bond, this rate of return on this investment is.

  Compute the resulting equilibrium price quantity combination

Compute the resulting equilibrium price quantity combination for every industry. Illustrate your answer with a suitable graph.

  Percentage rate of return

When Betsy goes to make her list for tomorrow she is upset that she didn't get everything done. In a well-written paragraph explain the economics behind her inability.

  Citizens bank in nominal terms

Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.

  Illustrate what happens if the consumer faces a borrowing

Illustrate what happens if the consumer faces a borrowing constraint that prevents her from borrowing.

  What range of interest rates could these firms use

For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.

  Teach a person to fish also he will eat foreve

The saying "Give a person a fish also he shall eat today; teach a person to fish also he will eat forever" is most consistent with.

  Subsequent ways does government involve the consumption

In which of the subsequent ways does government involve the consumption component of planned cumulative expenditures.

  Illustrate what factors may influence a household

Illustrate what factors may influence a household when deciding between buying stocks, bonds, or a house.

  Explain the effect of a quota that creates same amount

What are the price-quantity effects of this tariff on domestic consumers, domestic producers and foreign exporters. Explain how would the effect of a quota that creates the same amount of imports differ.

  Calculate the price and quantity

Calculate the price and quantity associated with the perfectly competitive outcome.

  Explain how you think these trends have affected

Explain how you think these trends have affected our overall economic well-being (think unemployment, wage rates, etc.) in recent years.

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