Determine g the expected constant rate of growth

Assignment Help Business Economics
Reference no: EM131197555

Albright Motors is expected to pay a year-end dividend of $0.75 a share (i.e., D1 = $0.75). The stock currently sells for $44 a share. The required rate of return on the stock is 10%. The dividend is expected to grow at a constant rate, g. Determine g, the expected constant rate of growth. Albright Motors is expected to pay a year-end dividend of $0.75 a share (i.e., D1 = $0.75). The stock currently sells for $44 a share. The required rate of return on the stock is 10%. The dividend is expected to grow at a constant rate, g. Determine g, the expected constant rate of growth.

Reference no: EM131197555

Questions Cloud

Balance of inventory and the balance of depreciation : Brenda’s Bar and Grill has total assets of $16.0 million, of which $10.0 million are current assets. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. What is the balance of inventor..
What and how much has been the rate of return : oe Doe deposited $ 51,000 in your savings account. The interest rate is 10% compounded semiannually. How old will take to reach $ 72.600.00 investment? 5. You have deposited $ 10,000 in equity investments, after three years, the balance of the invest..
Find the amount and interest : Find the amount and interest of $ 101.860 compound 12 1/4% for 20 years calculated: and. annually F. semiannually g. quarterly basis h. monthly 2. How much money do you need to deposit into your investment account to have $ 26,350.00 after five years..
Estimating the intrinsic value harkleroad technologies stock : An analyst is estimating the intrinsic value Harkleroad Technologies' stock. Harkleroad's free cash flow is expected to be $34 million this year, and grow at a constant rate of 7% a year. The company's WACC is 13%. Determine the per-share price of Ha..
Determine g the expected constant rate of growth : Albright Motors is expected to pay a year-end dividend of $0.75 a share (i.e., D1 = $0.75). The stock currently sells for $44 a share. The required rate of return on the stock is 10%. The dividend is expected to grow at a constant rate, g. Determine ..
Assuming that the market is in equillibrium : Thames Inc.'s most recent dividend was $2.75 per share (i.e., D0 = $2.75). The dividend is expected to grow at a rate of 3% per year. The risk-free rate is 6% and the equity market risk premium is 5%. The company's beta is 1.3. Calculate the price of..
Calculate nominal gdp in each year : In year 1 and year 2, there are two products produced in a given economy, cars and beef. Suppose that there are no intermediate goods. In year one, 200 cars are produced and sold at $15,000 each, and in year two, 250 cars are sold at $16,000 each. Ca..
Corruption perceptions index : Transparency International's Corruption Perceptions Index (CPI) is a comparative assessment of a country's integrity performance. Provide a brief analysis (not a description) of this index and its ranking using concepts from the readings and lectures..
Describe an example of time when you behaved as free rider : Describe an example of a time when you behaved as a “free rider.” Explain how your behavior may have been different had you had to pay for the good/service involved. Also describe how your specific free rider example could have been rectified.Ec

Reviews

Write a Review

Business Economics Questions & Answers

  Estimate maximum overall total effect on national income

In 2016, economists forecast the U.S. MPS will be 0.15 and the MPM will be 0.10. Estimate the maximum overall total effect on national income of the following two changes in fiscal policy If a decrease in govt spending of $100 billion and a decrease ..

  Economy cannot be considered fully employed unless

The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph.

  Level of tehnology and the stock of capital are fixed

Assume an economy in which the level of tehnology and the stock of capital are fixed. If there is a sudden increase in the labor force due to immigration, how would the standard of living be affected? Would a difference if the increase in the labor f..

  A goal of the consumer is to maximize utility

A goal of the consumer is to maximize utility. On separate diagrams, plot the income-consumption curves for X1 and X2. Explain why each has the particular shape drawn.

  Find out the net demand curve facing firm a

Find out the net demand curve facing firm A. Describe A's optimal price and output. Explain how much output do the other firms supply in total.

  Which competitive pay policy would you recommend to employer

Which competitive pay policy would you recommend to an employer? Why? Does it depend on circumstances faced by the employer? Which ones? What are the differences between merit pay and incentives? Why might an organization choose one or the other?

  Oligopoly market structure ok for free market-capitalist

There are many economists that cringe at the words: oligopoly and free market together. To them, it is an oxymoron, unjust and plain down 'wrong'. Why do you believe that is the case? Isn't an oligopoly market structure 'ok' for a free market/ capita..

  Evaluate the wisdom of the firms pricing policy

The Hanover Manufacturing Company believes that the demand curve for its product is-Evaluate the wisdom of the firm's pricing policy. A marketing specialist says that the pricing elasticity of demand for the firm's product.

  What amount two transactions add to personal consumption

What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?

  Environmentally appropriate production technologies

Environmentally appropriate production technologies also precuts with eco friendly packaging also recyclable materials.

  What is the date that the corporation is viewed

At its first meeting on September 1 (the day it was incorporated), ABC Inc. approved a pre in corporation contract entered into two months earlier, on July 1. What is the date that the corporation is viewed as having been a party to the contract? Why..

  Find simproniuss maximum willingness to pay for insurance

If Sempronius’ utility function is v(x) = 5((x)^(1/2)) + 99, he has exactly the same certainty equivalent and risk premium as above, with utility function u(x) = (x)^(1/2). Calculate Sempronius’s risk premium for v(x) =(x)^(1/4). Suppose Sempronius c..

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