User Account

All Pages

Determining the dividend pricing model

Assignment Help Finance Basics
Reference no: EM131388253

Dividend Pricing Model

A. Based on the 2014 dividends, what price would you be willing to pay forAnnaly Capital Mgmt. Co. (NLY)if you require a return (k) of 8%? Assume a decision date of January 3, 2015.

B. What is the actual one year return based on the December 30, 2014 price of the stock?

C. Why would you decide to buy or not buy NLY on January 3, 2015?

D. Suppose NLY decided to reduce dividends by 6% annually. Would you reconsider you decision in part "C"? Why or why not?

Show your sources, your work and explain why you chose the formulas used.

Reference no: EM131388253

Questions Cloud

To what remedy if any is forte entitled : Betty persisted in her refusal to accept the piano. The Forte Piano Company sued Betty to recover the contract price. To what remedy, if any, is Forte entitled?
Estimating the rate of return on investment : Assume that you wish to purchase a 12-year bond that has a maturity value of $1,000 and a coupon interest rate of 11%, paid semiannually. If you require a 7.6% rate of return on this investment (YTM), what is the maximum price that you should be w..
Design a fourbar linkage to carry the bolt : A second degree of freedom within the gripper assembly (not shown) pushes the bolt into the hole. The moving pivots should be on, or close to, the gripper assembly, and the fixed pivots should be on the base.
The difference between supply and quantity supplied : Why does the typical supply curve have a positive slope? and graphic. The difference between supply and quantity supplied. and graphic. What are the short term and long term effects of immigration on labor markets? Why does the typical demand curve h..
Determining the dividend pricing model : Based on the 2014 dividends, what price would you be willing to pay forAnnaly Capital Mgmt. Co. (NLY)if you require a return (k) of 8%? Assume a decision date of January 3, 2015.
Define your companys target market : Define your companys target market. Analyze type of consumer who will be drinking your beverage in demographic terms. Support your analysis with actual data on the size of the demographic groups in your local community.
State all of the remedies under the uniform commercial code : Sims contracted in writing to sell Blake one hundred electric motors at a price of $100 each, freight prepaid to Blake's warehouse.- State all of the remedies under the Uniform Commercial Code available to Blake.
Prepare the journal entries for transactions : Turbo Co. purchased 1,000 shares of DBC for $23 each this year and classified the investment as atrading security. Turbo sold 400 shares of the stock for $24 each. At year end the price per share of the DBC Company had increased to $26.
Design a fourbar linkage to carry the object : Add a driver dyad with a crank to control the motion of your fourbar so that it cannot move beyond positions one and three.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the company net working capital

The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short term notes payable worth $1,151,663 and other current assets of $121,455. What ..

  Required answer the following multiple-choice question the

maple corporations stockholders equity at june 30 2000 consisted of the followingpreferred stock 10 50 par value

  Determine the appropriate after tax cost of debt

The underwriters will charge $23 per bond in flotation costs. Determine the appropriate after tax cost of debt for Dublin International to use in a capital budgeting analysis.

  Computing the bond expected rate of return

Compute the bond's expected rate of return. Determine the value of the bond to you, given your required rate of return. Should you purchase the bond? Why?

  An important healthcare finance problem or challenge

Unit IV Research Paper Outline Theresearch paper in this course gives you the opportunity to study an important healthcare finance problem or challenge, analyze it in depth, and present your findings in an APA-formatted paper due in Unit VIII.

  Evaluate ibmrsquos earnings per share basic and identify

for this assignment read the ibm case update. use the financial statement tobull decompose ibmrsquos roe and discuss

  How much additional debt is required

How much additional debt is required if no new equity is raised and sales are projected to increase by 15 percent?

  Differences between a direct-financing and sales type lease

Discuss the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee?

  Based on prior information the standard deviation of the

an inspector of flow metering devices used to administer fluid intravenously will perform a hypothesis test to

  Create an argument to be presented to the leadership team

Create an argument to be presented to the leadership team in which you justify the need for your facility to invest in this new technology. Then indicate the value to the organization and provide support for your argument.

  Computation of value of the stock or market had no knowledge

Computation of value of the stock and which the market had no knowledge of prior to the announcement

  What would be the approximate expected price of a stock

What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grows at a constant rate of 7.5% if stock's require return is 15% and next year's dividend will be $2.00?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd