Find the expected market price per share

Reference no: EM1352476

You are thinking about buying a share of Kampfert Industries, which has a current market price of $31.60 per share. Kampfert's expects to pay a dividend of $2.37 per share next year. Your required rate of return on these types of investments is 12%. If dividends are expected to grow at a constant rate for the foreseeable future, and if your required rate of return is expected to remain at 12%, what is the expected market price
per share in 5 years?

a. $39.3793
b. $41.1520
c. $44.8625
d. $45.3659
e. $48.7683

Reference no: EM1352476

Questions Cloud

What force does the ground exerts on her : A 3 m long rigid beam with a mass of 115 kg is supported at each end. An 60 kg student stands 2 m from support 1. How much upward force does each support exert on the beam.

Cultural dimensions of group members : Why is it important to understand the cultural dimensions of group members? How does this affect group communication?

Organizational theory and behavior : Explain why do you think the subject of OB might be criticized as being "only common sense," when one would rarely hear such a criticism of a course in physics or statistics

What happen if it decrease the percentage of its output : If it decrease the percentage of its output devoted to capital goods, then its rate of growth will tend to increase. Its production-possibilities curve will shift to the left or its rate of growth will tend to decline.

Find the expected market price per share : Suppose you are planning about purchasing a share of Kampfert Industries, which has a current market price of $31.60 per share. Kampfert's expects to pay a dividend of $2.37 per share next year.

Impact on the employees and employers : Challenges: Their impact on the employees and employers - what would be the impact on employees and employers if the challenges were not addressed?

Maintaining current employers connection to internet : Assume you are responsible for selecting and maintaining your current employers connection to the Internet. Take some time to research routing protocols

Statistics in the field of psychology : Prepare a paper in which you examine the role of research and statistics in the field of psychology.

What information would a government needs to increase : What information would a government needs to increase the probability that its industrial policy would promote long-term self-generated economic growth.

User Account

All Pages