If the required return is 12 determine the value of a share

Assignment Help Finance Basics
Reference no: EM13477568

Suppose Primerica has just paid a dividend of $1.75 per share. Sales and profits for Primerica are expected to grow at a rate of 5% per year. Its dividend is expected to grow by the same amount. If the required return is 12%, what is the value of a share of Primerica in 6 years?

Reference no: EM13477568

Questions Cloud

What are some examples of hazard control methods that are : what are some examples of hazard control methods that are recommended in hazard prevention and reduction techniques? do
Briefly describe the basic difference between a : briefly describe the basic difference between a microprocessor and a
This dividend is expected to grow at a rate of 14 for three : penn corporation does not currently pay dividends. it is expected to begin paying dividends in year three 3 with a
Explain when conducting a detailed analysis define the : when conducting a detailed analysis explain the method technic of operations review. explain how it allows both
If the required return is 12 determine the value of a share : suppose primerica has just paid a dividend of 1.75 per share. sales and profits for primerica are expected to grow at
Identify the components of the project management life : 1. justify the use of tools and techniques used in project management including gantt charts and project network
If i were culturally biased it would certainly interfere : how might your cultural biases interfere with your effectiveness as a counselor?if i were culturally biased it would
How does maslows hierarchy of needs relate to effective : how does maslows hierarchy of needs relate to effective counseling?as stated in the text effective counseling results
The starting and ending total debt balances were 84652 and : question adelsons electric had beginning long-term debt of 42511 and ending long-term debt of 48919. the beginning and

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the firms operating cash flow during 2014

The firm's net capital spending for 2014 was $970,000, and the firm reduced its net working capital investment by $126,000.

  What is the projects discounted payback period

A project has an initial cost of $52,125, expected net cast inflows of $12,000 per year for 8 years, and a cost of capital of 12%. Show work for each.

  Determine economic order quantity

Sam's Bricks and Blocks uses about 2,000,000 bricks every year. Their order costs are $150.00 per order and Sam's carrying expenses are $160,000 per year.

  What price would you expect rylans stock to sell

Rylan Industries is expected to pay a dividend of $5.50 year for the next four years. if the current price of Rylan stock is $32.53, and Rylan's equity cost of capital is 13%, what price would you expect Rylan's stock to sell for at the end of the..

  Knowledge about capital structure

Capital structure is one of most complex areas of financial decision making because of its interrelationship with other financial decision variables. What is the firm's capital structure?

  Should the investor buy the project

Consider an apartment complex investment with a $500,000 purchase price. On a before-tax basis, should the investor buy the project? Why or why not?

  What is the value of the stock today

The next dividend for GTA2 corp will be $4 per share. Investors require a 16% return. Dividends of GTA2 increases by 6% every year. Based on this information what is the value of the stock today?

  Calculate the investor dollar-weighted average return

Calculate the investor's dollar-weighted average return for this five-year period.

  Benefits of international capital markets

What are some benefits of the international capital markets? does borrowing a portfolio of currencies offer any possible advantages over the borrowing of a single foreign currency?

  Calculating present and future value

Calculate the present value of a $100 cash flow for the following combinations of discount rates and times and also find future value of a $100 cash flow for the same combinations.

  How the adult learning principles might be applied

If you have not participated in a training event, then describe how the adult learning principles might be applied to a training for Advanced Microsoft Office (hint: what prior knowledge would students need, etc.?).

  Compute cost of equity

Salte Company is issuing new common stock at a market value of $27. Dividends last year were $1.45 and are expected to grow at an annual rate of 6% forever. Flotation costs will be 6 percent of market price.

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