How to calculate the average market price

Assignment Help Financial Management
Reference no: EM13971282

1) How to calculate the average market price?

Anoi Inc. is about to announce that it will expect to experience rapid growth for the near future with dividends growing at 27% for the next two years, 17% for the following two years, and then its current normal growth of 7% thereafter. The required return is 14% and the stock currently sells at $70 without this new information. What is the appropriate price for this stock after the announcement? And If investors require a 12% return on this stock.

Reference no: EM13971282

Questions Cloud

Write a swot analysis about hinged microfracture awl : Write a SWOT analysis about the following topics- Improved Orthopedic From for Surgical Retraction and Hinged Microfracture AWL. I want you to write about the (Strengths) four each topic.
Rate of return on the bonds realized by the investor : One year ago, a bank invested a sum of SEK 1 million in newly issued bonds, denominated in the same currency, with maturity five years hence. The bonds pay a yearly interest coupon calculated at the rate of 5% , and were issued at par. What would be ..
Benefits of integrating business functional area : Enterprise Resource Planning (ERP) Technology; Sales Demand, Manufacturing and Marketing Interface. The deliverable is a two to three page paper that includes a brief summary of this material, and consideration of the following idea. Is this paper'..
Write the hardy-weinberg equation : What are the five key assumptions that are necessary for the H-W Theorem to be valid? Write the Hardy-Weinberg equation:
How to calculate the average market price : How to calculate the average market price? Anoi Inc. is about to announce that it will expect to experience rapid growth for the near future with dividends growing at 27% for the next two years, 17% for the following two years, and then its current n..
Calculate the molarity of a solution : Calculate the molarity of a solution made by dissolving 12.1 grams of Na2CrO4 in enough water to form exactly 590 mL of solution.
Contrast the main policies of the us federal reserve : Compare and contrast the main policies of the US Federal Reserve and the European Central Bank over the last 10 years. Based on these policies, identify and contrast the main priorities of these institutions. How do these policies affect exchange rat..
Invest in a newly formed investment fund : James Fromholtz is considering whether to invest in a newly formed investment fund. The fund’s investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund’..
Estimate a cost formula for power cost. : Prepare a scattergraph by plotting ingots processed and power cost on a graph. Draw a straight line though the two data points that correspond to the high and low levels of activity. Make sure your line intersects the Y-axis.

Reviews

Write a Review

Financial Management Questions & Answers

  Common equity if the respective costs for these components

What is the WACC for a firm with 20% debt, 10% preferred stock, and 70% common equity if the respective costs for these components are 8% before the cost of debt, 12% before tax costs of preferred stock, and 18% before tact cost of common equity? The..

  How to profit given an expectation on currency movement

How to profit given an expectation on a currency movement

  Determine the accumulated amount of her investment

Emily is in the 25% bracket and has $15,000 available for investment during her current tax year. Assume that she remains in the same tax bracket over the next 7 years and determine the accumulated amount of her investment if she puts the $15,000 int..

  About the what is the modified duration

What is the Macaulay duration of a 5.6 percent coupon bond with ten years to maturity and a current price of $1,057.70? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.)

  Bonds make semi annual payments

Stone Sour Corp. issued 10-year bonds 2 years ago at a coupon rate of 7.20 percent. The bonds make semi annual payments. If these bonds currently sell for 102 percent of par value, what is the YTM?

  What is the degree of operating leverage for each

Two Companies, Oplev and Finlev, Each have sales of 100,000 unites at a $2.00 cost/unit. Oplev has Variable Cost of $1.25/unit and a Fixed Cost of $60,000.. Finley has Variable cost of $1.75/unit and a fixed cost of $10,000. What is the Degree of Ope..

  What is the financial break-even quantity

A project has the following estimated data: price = $58 per unit; variable costs = $36 per unit; fixed costs = $20,000; required return = 10 percent; initial investment = $30,000; life = six years. Ignoring the effect of taxes, what is the accounting..

  What is the expected annual cash flow

Cooper Commons is considering purchasing new, technologically advanced solar panels. The equipment will cost $625,000 with a salvage value of $50,000 at the end of its useful life of 10 years. The excess electricity from the panels will be sold back ..

  Whats the sustainable growth rate

Abbott Lab made $2.80 net income per share last year and paid out $1.30 in dividend. The company had a book value (or equity) per share of $20. The market has a risk free rate of 3.1% and market return 11.1%.   Abbott has a historical beta of .90. Wh..

  Residual distribution model

Plucky Products is planning for $3.3 million in capital expenditures next year. Plucky's target capital structure consists of 35% debt and 65% equity. If net income next year is $2.4 million and Plucky follows a residual distribution policy with all ..

  What is the present value of a bond maturing

What is the present value of a bond maturing in 20 years with a face value of $8000 and a coupon rate of 6%? Use a six months effective rate of 2%. Also draw a cash flow diagram.

  What is the payback period for this project

McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $827,500, and $1,245,000 over the next three years. What is the payback period ..

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