Odd dividend policy-current share price

Assignment Help Financial Management
Reference no: EM131575541

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $10.75 per share and has announced that it will increase the dividend by $8.75 per share for each of the next four years, and then never pay another dividend.

If you require a return of 15 percent on the company’s stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current share price

Reference no: EM131575541

Questions Cloud

What are some ways to minimize risk when investing : How do the "non-money" aspects of wealth impact on personal finance? What are some ways to minimize risk when investing?
What will be the annual percentage rate or apr : What will be the annual percentage rate, or APR, for this financing if interest is discounted?
Investors are applying to the renegotiated cash flows : What is the true discount rate (nominal rate with semi annual compounding) investors are applying to the renegotiated cash flows?
Issue of preferred stock outstanding : Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.40 dividend every year, in perpetuity. what is the required return?
Odd dividend policy-current share price : Hot Wings, Inc., has an odd dividend policy. If you require a return of 15 percent on the company’s stock, how much will you pay for a share today?
Mature manufacturing firm-current share price : Antiques ‘R’ Us is a mature manufacturing firm. If you require a return of 9 percent on this stock, what will you pay for a share today?
What are potential risks to the public and to stakeholders : What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders?
Determine the discount d and the proceeds p for this loan : Determine the discount D and the proceeds P for this loan.
Offered an investment : You have been offered an investment that will pay you 9% per year. If you invest $15,000, how long until you have $45,000?

Reviews

Write a Review

Financial Management Questions & Answers

  Wrap-up-labor relations policies and laws

Now that you have explored employee and labor relations policies, laws, and practices more fully,

  Accumulate enough to meet your down payment requirement

You need $10,900 for the down payment on a new car. You presently have $5,000 in savings for which you expect to earn 6% (annual rate, compounded monthly). If you deposit a further $500 each month to this account, how long, approximately, before you ..

  Earnings available to common stock

Sue Incs, earnings available to common stock of 4200000 last year, From these earnings, the company paid a dividend of $1.26 on each of its 1000000 common shares outstanding. In addition, the company will also issue $1,000 par value, 10% coupon, 5 ye..

  In 1895 the first us open golf championship was held the

in 1895 the first u.s. open golf championship was held. the winners prize money was 150. in 2006 the winners check was

  Used methods of determining capital budgeting decisions

According to research, NPV and IRR are the most used methods of determining capital budgeting decisions. Discuss the positive and negative aspects of these and any other methods you deem relevant. Finally, state the method you would use as a financia..

  What is the firms net new long-term debt

During 2009, Raines Umbrella Corp. had sales of $736,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $574,000, $104,000, and $132,000, respectively. In addition, the company had an interest expense of $100..

  Graph the yield curve

Gather data from The Wall Street Journal on interest rates for today's government securities of various maturities. - Graph the yield curve.

  How does starbucks dividend payout

What has occurred with Starbucks' dividend payout, dividend yield, and dividend per share over the past three years? Do you have any explanations for what has occurred?

  Capital budgeting decision

Which one of these is a capital budgeting decision?

  Compare two fixed-rate coupon bonds

Compare two fixed-rate coupon bonds that have different maturity dates: one is a 10-year bond, and the other is a 1-year bond.

  What are the expected earnings per share

Security Analysts that have evaluated Concordia Corporation, have determined that there is a 15% chance that the firm will generate earnings per share of $2.40; a 60% probability that the firm will generate earnings per share of $3.10; and a 25% prob..

  Question 1 write a short essay of 350-400 words for each of

question 1 write a short essay of 350-400 words for each of the following questions. where possible illustrate with an

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