Expected return if companys current stock price

Assignment Help Financial Management
Reference no: EM13921184

Expected Return If a company's current stock price is $25.00 and it is likely to pay a $.75 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?

Reference no: EM13921184

Questions Cloud

Concept of hrd change in an organization : Describe the concept of HRD change in an organization using the Sociotechnical systems theory.  Rationalize suitable interventions to address emotions of change.
Is the auto club liable : George Yanase was a paying guest at the Royal Lodge-Downtown Motel in San Diego, California. Yanase was a member of the Automobile Club of Southern California. Yanase’s widow sued the Auto Club for negligence. Is the Auto Club liable?
What is the value of their stock when the required rate : Value a Constant Growth Stock Financial analysts forecast Wal-Mart Stores (WMT) growth for the future to be 11.00 percent. Their recent dividend was $1.33. What is the value of their stock when the required rate of return is 14.00 percent?
What is the monthly payment on this loan : You have just borrowed $6372.90 to finance the purchase of a used car. The nominal annual interest rate is 12 percent. You have agreed to repay the loan over a two year period making monthly payments. What is the monthly payment on this loan?
Expected return if companys current stock price : Expected Return If a company's current stock price is $25.00 and it is likely to pay a $.75 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?
Appealing and informative handout for parents : In this Project, you will develop an appealing and informative handout for parents offering developmentally appropriate tips for dealing with health and safety issues in children from birth to age eight. Each of the possible topics includes an eth..
About the the inflation rate : An investment offers a total return of 14 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 9 percent. What does Janice believe the inflation rate will be over the next year?
Cost of ending inventory using weighted-average : Prepare the general journal entry to record the end of the year adjusting entry if Flip uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense.
Describe the events, the law, and how the court did resolve : Based on your own experiences, the video, or a news story, relate a time when you believe that the law affected a business. Describe the events, the law, and how the court did or should resolve your example. What sources of law would have created ..

Reviews

Write a Review

Financial Management Questions & Answers

  Developing materials for traditional photographic methods

Kodak used to primarily produce and distribute photographic paper and developing materials for traditional (i.e., non digital) photographic methods. A sizable portion of their business was home photography. Since they were one of the few suppliers of..

  What was average annual risk premium on small-company stocks

What was the average annual risk premium on small-company stocks for the period 1926-2011?

  What is its self-supporting growth rate

Bannister Legal Services generated $2 million in sales during 2010, and its year-end total assets were $1.5 million. Also, at year-end 2010, current liabilities were $500k, consisting of $200k in notes payable, $200k in accounts payable and $100k in ..

  Calculate the depreciation expense

You are given the following information for Gandolfino Pizza Co.: sales = $42,000; costs = $21,300; addition to retained earnings = $7,250; dividends paid = $1,200; interest expense = $5,300; tax rate = 35 percent. Calculate the depreciation expense.

  Market portfolio is equally likely to increase

Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security "X" goes up on average by 29% when the market goes up and goes down by 11% when the market goes down. Security "Y" goes down on average by 16% when the..

  This debt must be repaid in two equal installments

ABC Corp has the opportunity to invest $1 million now (t=0) and expects after-tax returns of $600,000 in t=1 and $700,000 in t=2. The project will last for two years. The appropriate cost of capital is 12% with all-equity financing, the borrowing rat..

  Required to submit a bid to supply

You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would ..

  After tax cost of debt

Lawler's is considering a new project. The company has a debt-equity ratio of 0.72. The company's cost of equity is 15.1 percent, and the after tax cost of debt is 7.2 percent. The firm feels that the project is riskier than the company as a whole an..

  What is their operating cycle and cash conversion cycle

Camp Manufacturing currently has average inventories of 90 days and accounts receivable are typically collected in 60 days. Camp’s payables are paid 30 days after the invoice is received. The company has sales of $30,000,000. Using a 365 day year, Wh..

  About the sales increase

Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.4 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

  Determine the value of Aggie

The Aggie Company has EBIT of $50,000 and market value debt of $100,000 outstanding with a 9% coupon rate. The cost of equity for an all equity firm would be 14%. Aggie has a 35% corporate tax rate. Investors face a 20% tax rate on debt receipts and ..

  Calculate the expected return on the security

A security has a beta of 1.5 when the risk-free rate is 2.6 percent and the expected return on the market is 12 percent. Calculate the expected return on the security. If the beta on the security in a) increases to 2.5, what is the new expected retur..

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