Factors affecting value of a stock

Assignment Help Corporate Finance
Reference no: EM1345346

Two people agree on the riskiness of a stock, they also agree on the expected value of D1 and on the expected future dividend growth rate. One person normally holds stocks for 2 years, while the other normally holds stocks for 10 years. Should both be willing to pay the same price for the stock. Why or why not?

Reference no: EM1345346

Questions Cloud

Discuss major fundamental shortcoming of theories : Discuss major fundamental shortcoming of theories of cost determination in england prior to roughly 1870, why failure.
Expected effective financing rate : Suppose the U.S. interest rate is 7.5%, the New Zealand interest rate is 6.5%, the spot rate of NZ$ is $.52, and the one year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the ef..
Estimate debt for companies : How is the cost of debt determined? Does the cost of debt differ if the company is privately traded as opposed to publicly traded?
What impulse will the engine impart to the rocket : Far in space, where gravity is negligible, a 485kg rocket traveling at 95.0m/s fires its engines. It shows the thrust force as a function of time. The mass lost by the rocket during these 30 s is negligible.
Factors affecting value of a stock : Two people agree on the riskiness of a stock, they also agree on expected value of D1 & on expected future dividend growth rate. One person normally holds stocks for two years,
Illustrate what are factors that influence supply loanable : Illustrate what are factors that influence supply of loanable funds and the factors that influence demand for loanble funds.
Traditional and derivative instruments : What are the differences between traditional and derivative instruments?
Amortization schedules of interest expense : Spencer Corporation sells 10% bonds having a maturity value of $3,000,000 for $2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable yearly on January 1.
Effects of international portfolio diversification : Examine the effects of international portfolio diversification on the investment portfolio. Analyze alternative investment vehicles.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Pickins mining

Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine.

  Find what was the firms economic val added

How much value did management add to stockholders' wealth during 2012 - What was the firms Economic Val Added

  Calculate the stock price of ibm

Calculate the stock price of IBM - Using the information of the present year to evaluate the current stock.

  Effective interest rate

Computation of PV, FV, Simple and effective interest rate - Evalaute the effective rate corresponding to 3% compounded quarterly.

  Show the change in the financial environment

Find one dilemma in finance will assist financial managers to overcome and state exactly how managers will resolve it.

  Efficiency ratio and cost reduction target

Overheads, efficiency ratio, cost reduction target - Multiple choice - activity-based costing analysis of one of its best-selling toys

  Calculate stock beta

The standard deviation of stock returns for Stock A is 30 percent. The standard deviation of the market return is 20 percent and correlation between Stock A and the market is .75.

  Find what is the length of the inventory period

The firm had a beginning inventory of $36,000 and an ending inventory of $47,000 and find what is the length of the inventory period

  Prepare the necessary closing entries in proper journal form

Preparation of necessary closing entries form the given adjusting transactions -  prepare the necessary closing entries in proper journal form

  Multiple choice questions on jit

Multiple choice questions on JIT and actions are likely to reduce the length of a company's cash conversion cycle?

  Find the yield to maturity at a current market price

Computation of YTM and present value of bonds - Find the yield to maturity at a current market price of (1) $829 or (2) $1,104?

  Define quality of care

Is it fair to require hospital emergency departments to provide unreimbursed care and What does "quality of care" mean?

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