Required rate of return on the equity investments

Assignment Help Finance Basics
Reference no: EM132245237

Suppose that the price a stock is bought for is ?$120. Based on the? one-period valuation model of stock? prices, if the stock is sold a year later at the price ?$128 and the required rate of return on the equity investments is 10?%, then the dividend paid out for the stock is ?$______. ?(Round your response to the nearest? penny.)

Suppose that the price a stock was bought for was higher than the one above. Holding every other variable the? same, this implies that the dividend paid out for the stock is ______.

Reference no: EM132245237

Questions Cloud

What is the beta of portfolio : What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Organizations involved in supply chain transfer back-forth : What do organizations involved in a supply chain transfer back and forth?
What must the risk-free rate be : What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
What type of financing is your best recommendation : What type of financing is your 'best recommendation' for me to get the money I need to start this business and why? What should be my major worries or concerns.
Required rate of return on the equity investments : Suppose that the price a stock is bought for is ?$120. Based on the? one-period valuation model of stock? prices, if the stock is sold a year later
Normal distribution with the given parameters : Assuming that D has a normal distribution with the given parameters,
Discuss the reasons why non-performing companies : Discuss the reasons why non-performing companies in the stock markets are sold and buy by performing companies on the stock exchange market portfolio.
Corporate social responsibility and tax avoidance : Degree of Bachelor of Commerce (Honours) in Accountancy - Hong Kong Baptist University - Relationship between corporate social responsibility and tax avoidance
Explain how the business model itself became dynamic tool : Explain how the business model itself became a dynamic tool by which Tesla, to a significant degree, shaped its own future.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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