Intrinsic value is placed on stock at higher growth rate

Assignment Help Financial Management

Reference no: EM131897979

Nixon Inc. currently pays $1.95 per share in dividends on its common stock. Analysts differ over the long run growth potential for the firm. Some believe the dividends will grow at 6.00% forever, while conservative analysts believe the firm will grow at 4.00% long term. The required return to own the stock is estimated at 13.00%.

What intrinsic value is placed on the stock at the higher growth rate?

What intrinsic value is placed on the stock for the lower growth rate?

Reference no: EM131897979

Questions Cloud

Service pistol shooting accuracy : Assume that we are estimating 2 different police officers' service pistol shooting accuracy. The first officer practices almost daily year round.

What value do you place on the stock today : If you want a 15.00% return on your investment, what value do you place on the stock today?

What is the npv of investing in this technology : Assuming a discount rate of 20%, what is the NPV of investing in this technology?

What was the power of the test : Now suppose you find that the gestational length in African American women is actually 38.5 weeks. What was the power of the test with a = 0.05.

Intrinsic value is placed on stock at higher growth rate : Nixon Inc. currently pays $1.95 per share in dividends on its common stock. What intrinsic value is placed on the stock at the higher growth rate?

Members of greek life organizations : Researchers are concerned about the binge drinking behaviors at a local university among members of Greek life organizations.

Determine the impact of the company mission : Research the corporation on its own Website, the public filings on the Securities and Exchange Commission EDGAR database, in the University's online databases.

Exposure to the endocrine disruptor bisphenol : Recent scientific literature has suggested a link between exposure to the endocrine disruptor Bisphenol A (BPA) found ubiquitously in many plastic materials.

Hypothesis test on a population proportion : You are conducting a two tail hypothesis test on a population proportion. The value of Zcis -1.88. What is the p-Value of Zc?

User Account

All Pages