Consideration in estimating the stock price of corporation

Assignment Help Financial Management

Reference no: EM131314086

Which of the following is an important consideration in estimating the stock price of a corporation?

A) the discount rate must be greater than the growth rate

B) the discount rate must be equal to the growth rate

C) the discount rate must be less than the growth rate

D) none of the above

Reference no: EM131314086

Questions Cloud

Discuss the tax treatment of business expenses : Discuss the tax treatment of business expenses that have the potential for significant abuse because of the personal nature of the expenditures, such as meals and entertainment, automobile expenses, travel expenses, and business gifts.

Principles of business- project management : Demonstrate knowledge and understanding of Project Management Principles including how to define the project - Evaluate the strategies and understand the constraints necessary when designing the project process.

The call protection period-what would be the yield to call : Zorp Corporation also has some bonds for sale that your company is considering. These bonds have a $1,000 par value and will mature in 16 years. The coupon rate on the bonds is 5% paid annually, and they are currently selling for $987 each. If the bo..

Disadvantages of contracting out certain services : What are the advantages and disadvantages of contracting out certain services that had been provided by the government? Please be specific.

Consideration in estimating the stock price of corporation : Which of the following is an important consideration in estimating the stock price of a corporation?

Are piercings and tattoos acceptable in your profession : What is your perception of body piercing and tattoos related to professional image? Are piercings and tattoos acceptable in your profession

Firms avoid seasoned equity offering to raise external funds : Firms avoid seasoned equity offerings to raise external funds and use financial leverage instead. Why?

Which man spread calvinist doctrine to scotland : GED 130 Introduction to Civilization:Bartholomeu Dias failed to complete a sea voyage to India because,What unusual title did Isabella, a woman, insist on being called as ruler of Castile?

Semi-annual bonds outstanding : The Fishing Pier has 7.70 percent, semi-annual bonds outstanding that mature in 12 years. The bonds have a face value of $1,000 and a market value of $1,157. What is the yield to maturity?

User Account

All Pages