Expects to receive an annual dividend

Assignment Help Financial Management
Reference no: EM131025847

Shane purchased a stock this morning at a cost of $11 a share. He expects to receive an annual dividend of $.27 a share next year. What will the price of the stock have to be one year from today if Shane is to earn a 15 percent rate of return on this investment?

Reference no: EM131025847

Questions Cloud

Describe how you would hedge against interest rate risk : You wish to sell your $50 million 10-year bond in 6 months from today. Describe how you would hedge against interest rate risk using US treasury bond futures. Illustrate your answer if rates go up and when they go down.
What would be the amount of the lease liability : If lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year?
Define risk-elaborate on the different cases of beta : Define risk. Elaborate on the different cases of beta. Explain the 3 factors which would affect it.
What are dimensionless groups that characterize the problem : If the lift L is a function of the free-stream velocity U∞, density ρ, chord c, angle of attack α, and viscosity ν, what are the dimensionless groups (π parameters) that characterize this problem?
Expects to receive an annual dividend : Shane purchased a stock this morning at a cost of $11 a share. He expects to receive an annual dividend of $.27 a share next year. What will the price of the stock have to be one year from today if Shane is to earn a 15 percent rate of return on this..
Using the FCFF approach to value a business : You are using the FCFF approach to value a business. You have estimated that the FCFF for next year will be $140.00 million and that it will increase at a rate of 6 percent for each of the following four years. After that point, the FCFF will increas..
Determine the peak flux linking the coil : A relay has a 500-turn coil that draws 50mA rms when a 60-Hz voltage of 24 V rms is applied. Assume that the resistance of the coil is negligible. Determine the peak flux linking the coil, the reluctance of the core, and the inductance of the coil..
How much of medical expense deduction : Mike and Mindy Miller paid the following medical expenses during the year (all in excess of reimbursement). Hospital and doctor bills: $840 Medicine and drugs: $730 Hospitalization insurance premiums: $6,200 Medicine and drugs (for dependent mother, ..
What is his recognized gain or loss : Alex Smith purchased 30 shares of XYZ stock on April 30, 2010 for $210, and on September 1, 2010, he purchased 90 additional shares for $900. On November 8, 2010, he sold 48 shares, which could not be specifically identified, for $528, and on Decembe..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the length of the firms cash conversion cycle

Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 37 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What i..

  Total of credit entries to the cash account amounted

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,000 and the total of the credit entries to the Cash account amounted to $600. The Cash account has a

  Analyze the roles and responsibilities of financial managers

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements - differentiate between various financial markets and institutions by comparing and contrasting options when selecting ..

  Discuss the following topic should trade restrictions be

discuss the following topic should trade restrictions be used to influence human rights issues? for many years human

  Negative net income and negative operating cash flow

Examine if it is possible for a company that has negative net income and negative operating cash flow to end the year with an increase in cash and an increase in stock price. Explain your answer in as much detail as necessary.

  Price of a given share of stock that currently trades

The risk-free rate is currently 2.8%. In one year the price of a given share of stock that currently trades at $40 per share is expected to either increase by 8% or decrease by 2%. What is the current value of a call on this stock with exercise price..

  Total cost is used to determine the price

Sosa Company has $39 per unit variable costs and $1,900,000 per year fixed costs. Demand is estimated to be 138,000 units annually. What is the price if markup of 35% on total cost is used to determine the price?

  Division is considering two investment projects

Your Division is considering two investment projects each of which requires an up front expenditure of $25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after tax cash flows (in millions of ..

  What will be the value of the investment in two years

Your brother has asked you to help him with choosing an investment. He has $7,400 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0500 annually with the interest being paid quarterly. What will be the..

  Breakeven analysis-better care clinic historical financial

Better Care Clinic (Breakeven Analysis) Fairbanks Memorial Hospital, an acute care hospital with 300 beds and 160 staff physicians, is one of 75 hospitals owned and operated by Health Services of America, a for-profit, publicly owned company. Using t..

  All assets are expected to grow proportionately with sales

An ambitious company, Kentag wants to be a fortune 500 company within 20 years. It expects its sales to increase 20% next year from its current level of $4.7 million. Kentag has current assets of $660,000, net fixed assets of $1.5 million, and curren..

  Problem regarding the yield curves

A 10-year US government bond issued on July 1, 2004 had an annual coupon of 4.39% paid semi-annually, a face value of $1000, and the first coupon payable in 6 months on January 3, 2005. Suppose the yield curve when the bond was issued was as given..

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