Determine the required return on this stock

Assignment Help Finance Basics
Reference no: EM1315705

Calculation of current required return on the stock.

1) Stock at ABC co sold last year at $48per share and dividends paid we're 4.5%.  Today this stock sells at $46per share. What is the current required return on this stock if the Co maintains a constant dividend growth rate of 3%?

2)  Abc co stock is valued at $51.40per share. The Co pays a constant dividend of $3.80.  What is the required return on this stock?

Reference no: EM1315705

Questions Cloud

Computing probability of waiting by cumulative distribution : Determine probability of waiting less than 12 minutes between successive speeders. By using cumulative distribution function of X.
Degree of freedom for paired samples t-test : In testing the difference between two means from two independent populations, the sample sizes do not have to be equal to be able to use the Z statistic.
Find the capital gains yield : Calculation of Firms growth Rate and Capital Gains Yield at given dividend options -  Find the Capital Gains Yield?
Utility maximization formula : Complete the following table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places.
Determine the required return on this stock : Calculation of current required return on the stock - Determine the required return on this stock
Probability regarding sample space of an experiment : Let S = {c, h, j, q, t, y} be a sample space of an experiment and let E = {c, h}, F = {c, q, y}, and G = {h, j, t} be events of this experiment. (Enter your answers using roster notation. Enter Ø for the empty set.)
Determining valid density function : Verify that this is valid density function. Find out probability that weight is smaller than 24 ounces.
Static classical ad or yp model : Using the static classical AD/YP model, demonstrate the effect of each of the following changes.
Compute the growth duration of each company stock : Compute the growth duration of each company stock relative to the S&P Industrials and evaluate the growth duration of Company A relative to Company B.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Describe questions on capital budgeting decisions

Describe questions on capital budgeting decisions and explain If salvage value is ignored in depreciating an asset for tax purposes, any sales proceeds received at the end of the life of the asset are fully taxable as income.

  Computation of current value of shares of a stock

computation of current value of shares of a stock under given dividend growth rate and This growth rate is expected to continue for the foreseeable future

  Computation of unamortised bond premium

Computation of unamortised bond premium, Gain and Loss on bond retirement and Prepare the journal entry to record the retirement of these bonds

  Determine the mean and standard deviation of the returns

Determine the mean and standard deviation of the returns

  Computation of net investment and net operating cash flows

Computation of net investment and net operating cash flows and what is the after-tax net operating cash flow for each of the five years

  Calculation of expected return on investment

Calculation of expected return on investment and what is your expected starting salary as well as the standard deviation of that starting salary

  Computation of new price of bonds

Computation of new price of bonds and the market interest rate on these bonds has dropped to 6%

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Computation of net income and operating cash flows

Computation of Net Income and Operating cash Flows and What is the depreciation tax shield

  Prepare in good form a balance sheet

Preparation of Balance Sheet - Prepare in good form a balance sheet as of February 28, 2001.

  Compute current value of futures position

Compute current value of futures position based on the rate calculated above plus the 2 points.

  Project evaluation using npv as well as irr

Project evaluation using NPV as well as IRR and additional budgets nor borrowing are allowed in any future budget period

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