How much should you pay for such stock

Assignment Help Financial Management

Reference no: EM131909562

Berry Corp just paid an annual dividend of S2.35. The Board of Directors at Berry Corp. decides that its dividend policy should reflect the company's high growth strategy. Yearly dividends will increase at a rate of 5% per year over the first three years, then will increase at a rate of 3% for the fourth year, and finally grow at 2% per year thereafter. How much should you pay for such a stock if you expect a 4% annual rate?

Reference no: EM131909562

Questions Cloud

Calculate npv for both conveyor belt systems : Calculate the NPV for both conveyor belt systems.

Find the percentage change in the value of the swiss franc : What is the percentage appreciation/depreciation of the Euro from the US point of view from 2/17 to 2/18?

What are some of the primary reasons a company de-cides : What are some of the primary reasons a company de-cides to expand internationally? Identify a company in news that has recently built a new overseas facility.

How species richness can be measured : Species richness is difficult to quantify. Explain the reasons why this is true, and then present one example of how species richness can be measured.

How much should you pay for such stock : Berry Corp just paid an annual dividend of S2.35. How much should you pay for such a stock if you expect a 4% annual rate?

Illustrate need statement of the problem : Create a first draft of the business case for the Final Group Project Case Study. Use the APA template (in Blackboard) and the syllabus to fill in the headings.

Proper cash flow amount to use as initial investment : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Implications of both the environmental justice : Discuss the ethical implications of both the environmental justice and social justice consequences of the skewed distribution of the impacts of production

Calculate jonathons taxable income : When you calculate Jonathon's tax liability are you required to use the tax tables or the tax rate schedules, or does it matter?

User Account

All Pages