Estimate of the company cost of equity

Assignment Help Finance Basics
Reference no: EM132434009

Quality Tech Ltd., just issued a dividend of $2.51 per share on its common stock. The company paid dividends of $2.01, $2.17, $2.25, and $2.36 per share in the last four years. If the stock currently sells for $43, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate?

Reference no: EM132434009

Questions Cloud

What vision did the founding fathers have for the country : What vision did the founding fathers have for the country? Has that Vision been achieved in the wake of President Trump and President Obama's administrations?
Evaluate the implications of shrimp farming in China : Evaluate the implications for the rate of exploitation of shrimp farming in China under circumstances of "open access".
Company generated cash flows : Assume that XYZ Company generated cash flows of $2.00 per share last year. XYZ's cost of capital is 12%. Estimate the value per share of XYZ
What types of injury of public health concern of radiation : What types of injury of public health concern are associated with exposure to each of the different forms of radiation?How does the risk of each injury vary
Estimate of the company cost of equity : What is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average
Why you agree or disagree with the your classmates threads : Emphasize why you agree or disagree with the your classmates' threads. Expand on the main points being made in your classmates' threads.
What are critical analysis of challenges-problems : What are the Challenges and Problems of Financial management of home health care?
Explain how to manage erosion : Explain how economics might affect landowner decisions to implement erosion control. Describe how plants prevent or contribute to erosion.
Highlight assumptions made : Highlight any assumptions made. Should the Irish firm make this investment? Make a case to support your decision.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  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.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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