Discuss what is the value of the futurediv stock

Assignment Help Accounting Basics
Reference no: EM131776451

I need these questions answered by 430pm EST please. ABC INC. just paid a dividend of $1.78 and the dividends are expected to indefinitely grow at a constant 2.6% rate. If investors require a return of 8.7% from this stock, what is the value of the ABC stock? Write in the value with two decimal points but no dollar sign or comma. FUTUREDIV INC doesn't pay dividends now, but will pay a dividend of $3.9, 9 years from now and will increase dividends by 2.8% per year thereafter. If investors require a return of 13.1% on this stock, what is the value of the FUTUREDIV stock?

Reference no: EM131776451

Questions Cloud

Discuss the required general journal entry to record : The required general journal entry to record the first payment on the note on December
Cause net loss to societal welfare : What market structure(s) are likely to cause a net loss to societal welfare?
Nineteenth and twentieth-century middle american societies : What, following independence from Spain, were the so-called "Liberal Reforms" enacted in certain parts of Middle America?
Determine the cost of the land to report on balance sheet : A contractor paid 910,000 to construct a new warehouse. Determine the cost of the land to report on the balance sheet. Show the answer step by step
Discuss what is the value of the futurediv stock : If investors require a return of 13.1% on this stock, what is the value of the FUTUREDIV stock
Implement restrictions on corporate : Explain how books like "The Jungle" helped the Progressives in their efforts to implement restrictions on corporate America.
Explian what is your experience with hospital readmissions : Is hospital readmission an indicator of poor delivery of health care? Why or why not? Explian what is your experience with hospital readmissions?
What amount should be amortized for the year ended : Palmiero can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2010
Accomplish department or organizational goal : A business process is a set of related activities and tasks that, once completed, will accomplish a department or organizational goal.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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