Compute the price of the stock

Assignment Help Finance Basics
Reference no: EM13270415

Sterling Corp. paid a dividend of $.80 last year. Over the next 12 months, the dividend is expected to grow at a rate of 10 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required rate of return (Ke) is 14 percent. Compute the price of the stock.

Reference no: EM13270415

Questions Cloud

Find time-average poynting power density beneath the surface : A 100 Hz electromagnetic wave is propagating down into the sea water with an electric feld intensity of |E| = 1 V /m just beneath the sea surface. a. What is |E| at a depth of 100 m b. What is the time-average Poynting power density just beneath t..
Quality of life in professional fire?ghters : What are the research questions? Hypotheses - what theoretical framework did the researcher use
What is the decrease in length : If the column is 2.30m in length before being stressed, what is the decrease in length
Determine what is the penetration depth of a microwave oven : The complex permittivity for bottom round steak is about epsilon = 40(1 - j0.3)*epsilon0(e0) at the operating frequency (2.5 GHz) of a microwave oven. What is the penetration depth
Compute the price of the stock : The new dividend after 12 months will represent D1. The required rate of return (Ke) is 14 percent. Compute the price of the stock.
What is jack weighted average cost of capital : The stock has a beta of 1.5 and sells for $60 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 7 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?
Obtain the induced current in the coil : A 180-turn circular coil has diameter 5.35cm and resistance 1.25?. obtain the induced current in the coil
What is the decay constant of this isotope : A drug prepared for a patient is tagged with 9943Tc, which has a half-life of 6.05 h. What is the decay constant of this isotope
How many years is it until this bond matures : The Lo Sun Corporation offers a 5.8 percent bond with a current market price of $823.50. The yield to maturity is 8.18 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation par value of bonds

Computation par value of bonds and What is the bond's annual coupon interest rate

  Provide specific conclusions

The data presented above is the financial statements provided by the client. You are the senior auditor of a Big for audit firm and partner in charge of the engagement has asked you provide an opinion on the financial statements presented above.

  What will the accumulated depreciation expense

What will the accumulated depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use?

  Explain the key reasons for purchasing mutual fund shares

Ray Sutton has worked in the management services division of Strategic Consultants for the last five years. He currently earns and yearly salary of about 95,000.

  Develop a financial plan to evaluate the venture

Develop a financial plan to evaluate the venture and its viability.

  Purchase of a new office phone system

Your firm is considering the purchase of a new office phone system.

  Question on present value of future cash flows

Rusty Steele will receive the following payments at the end of the next 3 years: $4,000, $7,000 and $9,000. Find out the present value of all future benefits?

  What is the value of rolens preferred stock

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stock of this type currently yields 9%. Assume dividends are paid annually.

  What is the depreciation expense for the equipment

What is the depreciation expense for the equipment in Year 3? Round your answer to the nearest dollar.

  Computing their statistical significance of stocks

Computing their statistical significance of stocks and Report the ticker symbol for your stock or fund

  What is the npv of the ticket scalping venture

Also has 6% interest rate. What's the NPV of the ticket scalping venture?

  Differences between a direct-financing and sales type lease

Discuss the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee?

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