Compute the current value per share of ti stock

Assignment Help Finance Basics
Reference no: EM13279342

TI paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the current value per share of TI stock.

Reference no: EM13279342

Questions Cloud

By what percentage did the cross exchange rate : By what percentage did the cross exchange rate of the Polish zloty in Swedish kronor (that is, the number of kronor that can be purchased with one zloty) change over the past year?
What is discounted cash flow : What is discounted cash flow? Where does this principle come from?
Determine the size of matrix product - matrix multiplication : Determine the size of their product and multiply them, if possible. If the matrix multiplication is not possible, use their sizes to explain why not.
Find the expected rate of return for mason common stock : Mason Corp. paid a dividend of $1.85 per share last quarter on its common stock. The company's stock is currently selling for $88.45 per share, and the growth rate in dividends is 6%. Find the expected rate of return for Mason common stock.
Compute the current value per share of ti stock : TI paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the current value per share of TI stock..
Explain the rate constant for the first order reaction : The reaction for the decomposition of dinitrogen monoxide gas to form an oxygen radical is: N2O--->N2 + O2. If the activation energy is 250 kj/mol and the frequency factor is 8.0 x 10^11 s^-1, what is the rate constant for the first order reaction..
What is the value of a preferred stock : What is the value of a preferred stock that pays a $4.50 dividend to an investor with a required rate of return of 10%?
Provide message integrity protection : An earlier version of WTLS supported a 40-bit XOR MAC and also supported RC4 stream encryption. The XOR MAC works by padding the message with zeros, dividing it into 5-byte blocks and XORing these blocks together. Show that this scheme does not provi..
Determine the relativistic momentum of the spacecraft : A spacecraft has a nonrelativistic (or classical) momentum whose magnitude is 1.3e14 kg · m/s. Find the relativistic momentum of the spacecraft

Reviews

Write a Review

Finance Basics Questions & Answers

  Finding the transfer price in different situations

Finding the transfer price in different situations - If Austria introduces an import tariff of 25 percent on microwave ovens, and permits this to be a deductible expense in figuring the subsidiary's income tax, what should the transfer price be?

  What is the cost of capital for this project

The debt-equity ratio is .65 and the tax rate is 40 percent. What is the cost of capital for this project?

  Billing practices and physician relationships

US attorneys are reviewing our billing practices and physician relationships.

  Risk reduction and mergers

Two large, publicly owned firms are contemplating a merger. No operating synergy is expected. But, since returns on the 2 firms aren't perfectly positively correlated

  What was cape may inventory turnover ratio

AND its Gross Profit margin was 30%. What was Cape May's Inventory Turnover ratio?

  Calculate the expected rate of return and standard deviation

You are considering investing in a project with the following possible outcomes: Calculate the expected rate of return and standard deviation of returns for this investment.

  Find the immediate dilution based on new corporate share

Macho Tool Corporation is going public at $50 net per share to the company. There also are founding stockholders that are selling part of their shares at similar value.

  Determine the nominal cost of interest

Boeing Corporation buys on 2/10, net thirty days. Determine the nominal cost of interest if Boeing does not take advantage of the trade discount offered? Suppose a 360 day year.

  What is the expected capital gains yield

The next dividend payment by Mosby, Inc., will be $2.90 per share. The dividends are anticipated to maintain a 7.75 percent growth rate, forever. Assume the stock currently sells for $49.40 per share.

  What are the big concerns going forward

How do you explain this contradiction in interest rate effects and what are the big concerns going forward?

  Explain evaluation of investment proposal by profitability

Explain Evaluation of Investment proposal through Profitability Index and Rank the proposals in terms of preference using the project profitability index

  Calculate the long position gain or loss

Greg recently inherited a large, family-run farm that primarily produces grain for harvest each year. Compute the long position gain or loss in this scenario.

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