Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Give a response to the statement:
"You say stock price equals the present value of future dividends? That's crazy! All the investors I know are looking for capital gains."
This statement takes into consideration the fact that people invest in shares of stock for different reasons. Some people invest long-term for the constant dividends that are paid at regular intervals. Other people are looking to buy shares and sell them in the short-term, on the up-tick, to acquire capital gains. These differences in investment strategy may influence a person's perception on the stock price as being either high or low, making it more or less attractive.
However, I think it is important to note that the stock price does equal the present value of future dividends. Even if you wanted to contribute some portion of the price to future earnings, one must realize that this portion of the price is going to be the same amongst stocks in comparable risk classes. Therefore, it is my interpretation that you can simply dismiss this when determining the present value and focus primarily on dividends.
The current yield on T-bills is 4.5%. Right now, the stock is quoted at $30 in the market, should you buy or sell this stock? Show your work.
Computation of value of your savings and explain what is the future value of your savings
Use the Internet to research one (1) publicly traded company and review its last annual report. Use an investor's view to perform financial analysis and discuss various non-financial factors impacting investment decision.
Write an essay of 1000 words about the topic on "the characteristics of a good manager".
why is the commercial paper market available only to the most creditworthy
He then formed a corporation and invested $400,000 in setting up a production plant. If the professor's belief is correct, what are the book and market values of the firm?
Your division has been allocated $15M for capital projects for the coming year. You've been able to identify five potential projects, as outlined in the table below, each of which will last 10 years.
5. You have estimated the value of a planned project by finding the present value (PV) of all the cash flows from that project. Which of the following would cause the project to look more appealing (have a greater net value)? a. the discount rate de..
Calculate the expected profit for each category assuming that sales is 5 200. The costs for this size sale is $4 500. The costs occur in the beginning of the year. What category should the company sell to?
Explain Theory about valuation procedures in investment banking and heuristics rather than more sophisticated valuation procedures expedite the procedure? What do you think
a bond has a 8 coupon rate and a 1000 face value. the bond has 10 years to maturity. if investors require a 6 yield
what do you think of when you hear the word debit? what do you think of when you hear the word credit? why does your
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd