Investment in common stock of keller corporation

Reference no: EM13115797

You are considering an investment in the common stock of Keller Corp. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00). The stock has a beta equal to 0.09 , The risk free rate is 5.6%, and the market risk premium is 6%. The stock's dividend is expected to grow at some constant rate g. The stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?

Reference no: EM13115797

Questions Cloud

Illustrate what is the angular speed of the system : The child then proceeds to walk toward the edge of the merry-go-round. Illustrate what is the angular speed of the system when the child reaches the edge?

Draw the cell of insect at prophase 1 of meiosis : Draw the cell of insect at prophase 1 of meiosis showing the location of each gene /allele on the chromosomes.

How many moles of sodium hydroxide would be required : How many moles of NaOH would be required to completley neutralize 37.22mL of 0.25M HCl.

Description of bond values : The Heymann company's bonds have 4 years remaining to maturity. Interest is paid annually; the bonds have a $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year.

Investment in common stock of keller corporation : You are considering an investment in the common stock of Keller Corp. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00).

Show p-value for testing for the mean score in state : Since over 10,000 students in his state took the Math SAT, he can show that the P-value for testing whether the mean score in his state is more than the national average of 480 is less than 0.0001. What we can conclude from this?

Describe the range of cf phenotypes : describe the range of CF phenotypes. List the other organs besides lungs that are affected and how does it affects those organs.

How many h atoms are in allyl sulfide : How many moles of Allyl Sulfide (C3H5)2S in 23.2g? How many H atoms are in 0.85 mole of allyl sulfide?How many atoms of Carbon are in 4.20 X 10^23 molecules of allyl sulfide.

Question regarding increased productivity : A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts.

User Account

All Pages