Financial analysts forecast limited brands growth

Assignment Help Financial Management
Reference no: EM131010986

Financial analysts forecast Limited Brands (LTD) growth for the future to be 10.6 percent. LTD’s most recent dividend was $0.80. What is the fair present value of Limited Brands’s stock if the required rate of return is 14.9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Fair present value    $

Reference no: EM131010986

Questions Cloud

Balance sheet and income statement : BBB Company's balance sheet and income statement follow: BBB COMPANY Income Statement For Year Ended December 31, 2011 Sales $38,000 Operating expenses:
Is there anything like a frictionless surface : The Angle of Repose is the minimum angle required for an object to overcome the force of friction and begin sliding down hill under the force of gravity. In another sense, it is the maximum angle that a slope can be for unconsolidated material, b..
Review of wilkinson the seven laws of the learner : You will submit a 1500-2250-word review of Wilkinson's The Seven Laws of the Learner. The review must be written in current Turabian format and include a summary, critique, and application in addition to a title page and bibliography
Describe the ethical issues in the field of tax accounting : Describe the ethical issues in the field of tax accounting within a company.
Financial analysts forecast limited brands growth : Financial analysts forecast Limited Brands (LTD) growth for the future to be 10.6 percent. LTD’s most recent dividend was $0.80. What is the fair present value of Limited Brands’s stock if the required rate of return is 14.9 percent?
Handle an ethical conflict : What steps should a management accountant take if established written policies provide insufficient guidance on how to handle an ethical conflict?
How does patient safety relate to evidence based practices : Choose one of the national patient safety initiatives identified by The Joint Commission or AHRQ. How does patient safety relate to evidence based practices
Create a data flow diagram of the current system : a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities ..
What is the equivalent of the root directory : Write the command you used. Can you think of an alternative to that command - Use the vi editor to create a file named lecture05.txt and type descriptions of the commands we are discussing - pwd, mkdir, rmdir, rm, cd, cp, and mv.

Reviews

Write a Review

Financial Management Questions & Answers

  Assumption about market equilibrium

Suppose that stock L sells for $50 today and is expected to pay a dividend of $3.00 at the end of one year. Firm L's beta is 1.20, the market expected return is 10%, and the riskless return is 3%. Using the CAPM and an assumption about market equilib..

  Compute the interest on that investment

We have an investment of $15,000on which we receive $1,000 yearly, as well as $20,000 7 years later. Compute the interest on that investment. We invest $10,000 for 10 years. we receive $14,000 10 years later. the interest is 25% anually. What is the ..

  The existence of unemployment compensation

The existence of unemployment compensation most likely will cause less unemployment.

  Challenge ahead is to serve on board of directors

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Schenkel has 385,000 shares outsta..

  The efficient market hypothesis supports

The efficient market hypothesis supports which one of these statements?

  Simple interest on its investment accounts

First Simple Bank pays 9.1 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 11..

  What is expected value of each quarterly dividend payment

James River Corp has preferred stock outstanding that trades at $125. If the stock yields 8%, what is the expected value of each quarterly dividend payment?

  Calculate the operating and cash cycles

Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 11,100 $ 12,100 Accounts receivable 6,100 6,400 Accounts payable 8,300 8,700 Credit sales $ 91,000 Cost of goods sold 71,000 Calculate..

  Return on her savings

Joan is saving to open her own dress shop in 10 years. She currently has $10,000. In addition, she plans to save $2,000 per year for the next 5 years and $3,000 per year for the following 5 years. How much will Joan have in 10 years if she earns a 10..

  Suppose the yield to maturity on the bond increases

You find a bond with 25 years until maturity that has a coupon rate of 10.0 percent and a yield to maturity of 8.5 percent. Suppose the yield to maturity on the bond increases by .25 percent. What is the new price of the bond using duration?

  Organizations build and manage prisons

Which of the following levels of government and/or organizations build and manage prisons?

  Calculate the accrued principal and coupon payment

Suppose you purchase a $1,000 TIPS on January 1, 2013. The bond carries a fixed coupon of 1 percent. Over the first two years, semi annual inflation is 2 percent, 2 percent, 4 percent, and 2 percent, respectively. For each six-month period, calculate..

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