Pay for the company stock

Assignment Help Finance Basics
Reference no: EM131173343

Micro, Inc. will pay a dividend of $2.30 per share next year. Ifthe company plans to increase its dividend by 9 percent per year indefinitely, and you require a 12percent return on your investment, what should you pay for the company's stock?

Reference no: EM131173343

Questions Cloud

Direct measures to correlate with per capita GDP : Is GDP a Good Measure of Economic Well-Being? If GDP is a good measure of well-being, why is Switzerland’s GDP so much lower than India’s GDP or China’s GDP? What measures would be better to compare the well-being of different countries? How do you e..
What is the state of the steam leaving the heating coils : what is the state of the steam leaving the heating coils of the evaporator? For a surroundings temperature of 300 K, make a thermodynamic analysis of the process.
Evaluate three communication strategies : Interpret the potential causes of resistance in the organization. Identify and describe three (3) potential causes of resistance to your change plan. Identify and describe three (3) potential sources of resistance to your change plan.
Monopolistic competition and monopoly : Risk-averse persons sometimes prefer to play some gambles even if they know that those gambles are not fair, i.e., on average people lose by playing them.  Which of the following is true for perfect competition but not true for monopolistic competiti..
Pay for the company stock : Micro, Inc. will pay a dividend of $2.30 per share next year. Ifthe company plans to increase its dividend by 9 percent per year indefinitely, and you require a 12percent return on your investment, what should you pay for the company's stock?
In what way will the target behavior be assessed : In what way will the target behavior be assessed? Provide details on a method to document the targeted behaviors. Test the assessment out in your practicum placement.
Higher risk-adjusted returns : Determine which stock has higher risk-adjusted returns according to the Sharpe Index. Which stock has the higher risk-adjusted returns according to the Treynor Index?
Speculating with currency put options : Alice Duever purchased a put option on British pounds for $0.04 per unit. The strike price was $1.80 and the spot rate at the time the pound option was exercised was $1.59. Assume there are 31,250 units in a Britissh pound option. What was Alice's..
Explain what are at least five key points in the articles : What are at least five key points in the articles and the text readings? Based upon your experience in education, how might you apply this content to a classroom and instruction?

Reviews

Write a Review

Finance Basics Questions & Answers

  Answer the multiple choice questions

Accounting for long-term investments in equity securities with controlling influence uses the: at the end of the accounting period, the owners of debt securities:

  A currency trader notices that the three-month forward

the current spot chfusd rate is 1.3680chf. the three-month usd interest rate is 1.05 the three-month swiss interest

  An executive compensation scheme might provide a manager a

an executive compensation scheme might provide a manager a bonus of 1000 for every dollar by which the companys stock

  Ms rb purchased 5 boxesnbsp at anbsp cost of 5000 in june

ms rb purchased 5 boxesnbsp at anbsp cost of 5000. in june 2013 it purchased 3 boxesnbsp a total cost of 6000. in

  Which is an effective way to achieve such goal

Currently, the beta of a stock fund is 1.2. Suppose the fund manager wants to reduce the beta of this portfolio. Which is an effective way to achieve such goal?

  What is the net incremental tax cash flow

The firm's marginal tax rate is 34 percent and its required rate of return is 12%. What is the net incremental tax cash flow?

  Find the market value after tax weighted average cost of

find the market value after tax weighted average cost of capital for a firm with 45m of equity has a required rate of

  The expected return for the general market is 128 percent

the expected return for the general market is 12.8 percent and the risk premium in the market is 9.3. tasaco lbm and

  Amos differential amplifier

AMOS differential amplifier biased with a current source I =200 μA is found to switch currents completely to one side of the pair when a difference signal vid =0.3 V is applied. At what overdrive voltage will each of Q1: and Q2: be operating when ..

  What is the coefficient of variation on the companys stock

Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?

  What is the current market value of tracer bond

4. Tracer Manufacturers issued a 10-year bond six years ago. The bond's maturity value is $1,000, and its coupon interest rate is 6 percent. Interest is paid semiannually. The bond matures in four years. If investors require a return equal to 5 pe..

  Compute the net present value and the irr for the venture

Compute the net present value (NPV) and the IRR for this venture. What is the break-even selling price for this investment, that is, the price that would yield an NPV of $0?

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