Compute your estimate of the stocks current price

Assignment Help Business Management
Reference no: EM13117088

A companys currently pays a dividend of $2 per share. Its estimated that the companys dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The companys stock has a beta of 1.2, the risk free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stocks current price?

Reference no: EM13117088

Questions Cloud

Confidence interval for difference in mean hdl levels : Generate a 95% confidence interval for the difference in mean HDL levels between men when exercise regularly and those who do not.
Elucidate in what direction must he now travel to reach base : He was supposed to travel due north for 5.6km, but he actuallytraveled 7.8km at 50 degrees north due east. (a) how far and (b) elucidate in what direction must he now travel to reach base camp?
Produce only two types of polypeptides in a translation : A repeating polymer with the sequence 5'- GUAGUAGUAGUA...-3' was found to produce only two types of polypeptides in a translation system that uses cellular componants but not living cells. Onle polypeptide consisted of repeating Val and the other ..
Draw a picture of the predicted results : An SDS-PAGE gel is run of proinsulin and insulin.Samples were treated with beta-mercaptoethanol prior to electrophoresis.Draw a picture of the predicted results.
Compute your estimate of the stocks current price : The companys stock has a beta of 1.2, the risk free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stocks current price?
Identify the active site of this enzyme : The substrate of this enzyme is rich in positive charged chemical groups. On the surface of this protein there are two hydrophilic clusters and a solvent (water) -exposed hydrophobic pocket.
Find probability that oven cause a core to be defective : If the oven gets hotter than 475 degrees F, the core is defective. What is the probability that the oven will cause a core to be defective?
Knowledge of aggregate demand and aggregate supply : Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
Illustrate at what value of theta does the block begin : The angle of elevation theta is increased slowly from the horizontal. Illustrate at what value of theta does the block begin to slide (in degrees)?

Reviews

Write a Review

Business Management Questions & Answers

  Illustrate what are the steps in international strategy

Classroom discussion, no word or page limit: Illustrate what are the steps in international strategy formulation and are these likely to vary among industries?

  Deceptive tactic of consumer protections

In reviewing all of the consumer protections, classify the two most harmful to citizens if the protection did not exist. State your rationale with your answer.

  Explain environmental policies and sustainability

What strategies related to environmental policies do organizations use to report sustainability? What area of focus would make the greatest effect?

  Besides sales as well as expenses there are a variety

Besides sales as well as expenses there are a variety of control measures that management uses

  Question related to organizational performance

The major topic is Organizational Performance. I have a subsection which is the integration plan for optimizing the contributions from internal functions.

  Describe how you can use experiential marketing tools

Describe how you can use experiential marketing tools for the brands (especially for FreshX). What tools will you use to measure outcomes from such events?

  Which career management perspective most resembles

Which career management perspective most resembles your current workplace: individuals focusing on themselves,

  An analysis on swot

Presenting an analysis on SWOT regarding their company to four directors and the co-presidents.

  Vice president of giant battery division

The vice president of Giant's battery division and the president of Bigger agree to divide up the market between them so they will not have to compete for customers. Is this agreement legal? Fully explain.

  Causes of technological disasters

Review the five categories of technological disasters. give real life examples, of how on a smaller scale each of these categories of disasters might occur and affect any sort of business project.  What would be root causes of technological disaster..

  What effect could discussion of ground rules

Write a description of this team and its task, paying particular attention to the behavioral expectations for which the team members held each other accountable-these might be spoken or unspoken.

  Decision-making processes in transportation

Decision-making processes in transportation carrying time sensitive material.

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