Normally pays a quarterly dividend

Assignment Help Financial Management

Reference no: EM131340607

Balloons Inc normally pays a quarterly dividend. The last such dividend paid was $1.25, all future quarterly dividends are expected to grow at 7 percent, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $2.45 per share that is not expected to affect any other future dividends, what should the stock price be?

$17.15

$18.77

$20.09

$19.11

Reference no: EM131340607

Questions Cloud

Identify the parenting style of kris kardashian : Identify the parenting style of Kris Kardashian and explain how her parenting style affected the development of self-esteem in her children in childhood, adolescence and adulthood.

Identify the following rocks using the key provided : Identify the following rocks using the Key provided. Place the names with the appropriate number.Basalt, Breccia, Chert, Conglomerate, Coquina, Diorite, Fossiliferous Limestone, Garnet schist, Gneiss, Granite, Marble, Obsidian, Oolitic Limestone,..

Future value of multiple annuities-retirement plan : Future Value of Multiple Annuities Assume that you contribute $240 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $340 per month for another 20 years. Given a 8.0 percent interest rate, what is the valu..

Discuss progress with establishing exposure limits : Identify the primary issue and why it is still a problem in industry more than a decade after the hazard was identified? Discuss progress with establishing exposure limits.

Normally pays a quarterly dividend : Balloons Inc normally pays a quarterly dividend. The last such dividend paid was $1.25, all future quarterly dividends are expected to grow at 7 percent, and the firm faces a required rate of return on equity of 14 percent. If the firm just announced..

Find the minimum power that must be launched into the fiber : The fiber loss is 0.5 dB/km. Fiber is spliced every 5 km and has two connectors of 1-dB loss at both ends. Splice loss is only 0.2 dB. Determine the minimum power that must be launched into the fiber.

Formal environmental management system : Prior to your first meeting, the CEO has asked you to submit a report to the executive board. You are to submit a report on the need to formalize and integrate a formal environmental management system (EMS) within the organization. During your pre..

Discuss about fragility and human nature : On Conservatism discuss:a) Premise foundations: Fragility, Human Nature, The anti-Utopian Impulse.b) The meaning of ordered liberty.c) The branches of conservatism: National Defense, Social, Economic, Cultural.

Discuss methods to maintain a successful project solution : Describe the methods to be used to decide the future of the solution. Discuss methods and specific plans to maintain a successful project solution.

User Account

All Pages