Find the initial stock price

Assignment Help Operation Management
Reference no: EM132007154

Suppose a firm has just paid a dividend of $2.50. The firm is expected to grow at 8% per year for the foreseeable future.

An appropriate discount rate is 12%. Find the initial stock price.

Reference no: EM132007154

Questions Cloud

Use the npv decision rule to evaluate this project : Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations.
Firm short-term operating cycle : Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?
Sketch the tree diagram of price changes over the year : Use Put-Call parity to find the value of a call option written on the same shares with the same exercise price and expiration date.
Compute the current and debt-to-equity ratios : Long-Term Liabilities $40, and Equity $60. Compute the following ratios: current, debt-to-equity, return on sales, and asset turnover
Find the initial stock price : Suppose a firm has just paid a dividend of $2.50. The firm is expected to grow at 8% per year for the foreseeable future.
Default and liquidity risks : Both have the same default and liquidity risks. Given these assumptions, which of these statements is CORRECT?
What about the pros and cons will change as a result : Suppose your firm decides to cap the CEO's pay to 7 times that of the lowest paid worker. What are the pros and cons of doing this?
What rate of return should an investor expect : Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds?
Find the minimum number of votes needed to ensure : Suppose a firm has 16.2 million shares of common stock outstanding and six candidates are up for election to five seats on the board of directors.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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