Orecasted the growth rates for the next three years

Assignment Help Financial Management

Reference no: EM13927969

ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. The company then expects to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.54 last week. If the required rate of return is 17 percent, what is the value of this stock?

Reference no: EM13927969

Questions Cloud

What is the initial weighted average cost of capital : The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee’s current capital structure calls for 40 percent debt, 30 percent preferred stock, and 30 percent common equity. What is the initial weighted average cost of..

Indicate what account is impacted and the amount of impact : Indicate what account is impacted and the amount of the impact. Also, tell where the account will be presented on the financial statement. Assume a 35% tax rate if needed. An automobile dealer sells for $138,000 an extremely rare Invicta, which it pu..

Debt market for interest rate-credit risk transfer vehicles : Write a 2-page paper in which you assess the debt market for interest rate and credit risk transfer vehicles. You are required to use at least two journal articles and follow proper APA format.

How can crystal pay this loan off in six years : How can I solve the following problem using excel? What are the financial formulas that I can use? Crystal has a total of $35,108.02 in loans. Below is a breakdown of the total loan: How can Crystal pay this loan off in 6 years? 10 years?

Orecasted the growth rates for the next three years : ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. The company then expects to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.54 last week. ..

Invested to have enough at retirement to buy the boat : John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $446,300. He estimates that the boat he wants will cost $324,500 when he retires in 6 years. Assuming quarterly comp..

Compute the issue price of the bonds : Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semi annually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds.

What was its market debt-to-value ratio : In 2013 Caterpillar Inc. had about 654 million shares outstanding. Their book value was $33 per share, and the market price was $86.50 per share. The company’s balance sheet shows that the company had $19.7 billion of long-term debt, which was curren..

What amount will clancey receive when it issues the bonds : Clancey Inc. issues $2,155,700 of 7% bonds due in 13 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%. What amount will Clancey receive when it issues the bonds?

User Account

All Pages