Stock price according to constant growth dividend model

Assignment Help Financial Management
Reference no: EM13721905

The last dividend of delta, inc. was $8.15, the growth rate of dividends is expected to be 2.48 percent, and the required rate of return on this stock is 11.05 percent. What is the stock price according to the constant growth dividend model (Godron model)?

Reference no: EM13721905

Questions Cloud

What is the amount of the cash flow to creditors for year : During the past year, the Rawlins Co. paid $234,800 in interest along with $75,000 in dividends. The company issued $50,000 of stock and $200,000 of new debt. The company reduced the balance due on the old debt by $325,000. What is the amount of the ..
Calculate required return on manufacturings common stock : King Farm Manufacturing Company's common stock has a beta of 2.3. If the risk-free return is 4.88 percent, and the market risk premium s 8.24 percent. Calculate the required return on King Farm Manufacturing's common stock. Round the answers to two d..
What is the absolute permeability of the soil k : What is the hydraulic gradient from the reservoir to the collection ditch and what is the coefficient of permeability of the soil and what is the absolute permeability of the soil K?
What is the internal growth rate : A firm has sales of $173,000, total assets of 160,000, net income of $15,000, and dividends paid of $3,000. What is the internal growth rate?
Stock price according to constant growth dividend model : The last dividend of delta, inc. was $8.15, the growth rate of dividends is expected to be 2.48 percent, and the required rate of return on this stock is 11.05 percent. What is the stock price according to the constant growth dividend model (Godron m..
Significant components of pay-for-performance system : For this assignment, create a PowerPoint presentation in which you provide your analysis of the significant components of a Pay-for-Performance system and evaluate the relationships between employee job performance and the reward systems deigned t..
Increase its ratio of total debt-total assets : If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means of increasing its return on equity (ROE), and it is able to maintain a 4.5% return on assets(ROA), what will be the new return on equity (ROE) after it..
Subject hr management in small organizations : Question: Write down research paper on the subject HR Management in Small Organizations.
Business analyitics in supply chains : Business analyitics in supply chains in 100 words with references

Reviews

Write a Review

Financial Management Questions & Answers

  Analyse the finance costs of the respective sources

Identify the sources of short/medium and long term finances available to Citilink now and in near future. You may refer to Appendix I to support your findings, if needed.

  Earnings before interest and taxes and net income decrease

(Leverage and EPS) You have developed the following proforma income statement for your corporation: Sales $45832000 Variable costs (22756000) Revenue before fixed costs $23076000 Fixed costs (9105000) EBIT $13971000 Interest expense (1317000) Earning..

  From the books of agarwal from books of aggarwal bors

from books of aggarwal bors following information has been extracted rs. sales 240000 variable costs 144000 fixed costs

  Convertibles securities add value to firms using them

It is always better to finance long term projects with equity rather than debts. Discuss.

  Firm a has 10000 in assets entirely financed with equity

nbsp1. firm a has 10000 in assets entirely financed with equity. firm b also has 10000 in assets but these assets are

  Complute the capital asset pricing model

Compute the CAPM-β of the portfolio with respect to the market

  Examine the degree of strategy linkage

Ensure best resources allocations regarding to the quantity and competences and ensure that all undertake projects are alignment to organization strategy and examine the degree of strategy linkage.

  Determine the prospective price-earnings ratio

Provide an estimate of the value of the company, indicating the proportion of the value accounted for by the company's growth prospects and determine the prospective price-earnings ratio of the company and comment on its anticipated change in value..

  The operating cost of a new machine

The operating cost of a new machine is $500 for the first year. Starting the second year, the operating cost increases by $200 per year for the next 10 years. Calculate the equivalent annual operating cost of the machine. What will be the present and..

  Setting the price on new outpatient service

Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service.  What per visit price must be set for the service to break even? To earn an annual profit of $100,000? Repeat Part a, but assume that the variable co..

  Calculate the current earnings per share

Calculate the firms EOQ for the item of inventory and what is the firms total cost based upon the EOQ calculated above - Calculate the current earnings per share

  Does arbitrage destabilize foreign exchange markets

Does arbitrage destabilize foreign exchange markets and arbitrage can be loosely defined as capitalizing on a discrepancy in quoted prices by making a riskless profit

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