The red bud co pays a constant dividend of 300 a share the

Assignment Help Finance Basics
Reference no: EM13567892

The Red Bud Co. pays a constant dividend of $3.00 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8.6 percent?

$8.31

$3.26

$6.00

$5.31

$3.40

Reference no: EM13567892

Questions Cloud

The dividend is expected tp grow forever at a constant : woidtke manuffacturings stock currently sells for 20 a share. the stock just paid a dividend of 1.00 a share ad the
If the interest rate is 5 how must you set aside each year : if the interest rate is 5 how must you set aside each year to make sure that you will have 2 million in the
If the inflation rate was 44 percent over the past year : you bought one of rocky mountain manufacturing co.s 9 percent coupon bonds one year ago for 1054.80. these bonds make
This assignment is an analytical essay that requires a : sourcesbullthis assignment is an analytical essay that requires a serious research inquiry and the use of primary and
The red bud co pays a constant dividend of 300 a share the : the red bud co. pays a constant dividend of 3.00 a share. the company announced today that it will continue to do this
What is the operating profit if the sales was 2860000 and : what is the operating profit if the sales was 2860000 and costs of goods sold 2450000 depreciation was 6 of the total
It had 20 million of interest expense and it corporate tax : ebitda of 7.5 million and a net income of 1.8 million. it had 2.0 million of interest expense and it corporate tax
Doublewide dealers has an roa of 9 a 65 profit margin and : doublewide dealers has an roa of 9 a 6.5 profit margin and an roe of 22.a. what is its total assets turnover? round
Select one 1 of the following scenarios on which to focus : select one 1 of the following scenarios on which to focus your cause and effect paper. research the topic and include

Reviews

Write a Review

Finance Basics Questions & Answers

  Should the old stemer be replace

To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. parker marginal federal-plus-state tax rate is 40%, and its WACC is 14%. Should it replace..

  How fast can sales grow before any new fixed assets

Alter Bridge Mfg., Inc., is currently operating at only 85 percent of fixed asset capacity. Current sales are $760,000. How fast can sales grow before any new fixed assets are needed?

  What are the expected dividend yield and capital gains

After Year 3, dividends will grow at a constant rate of 6%. What is the stock's intrinsic value under these conditions? What are the expected dividend yield and capital gains yield during the first year?

  What is the internal growth rate the firm can achieve

What is the internal growth rate the firm can achieve without any external financing? Currently, the firms sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190..

  Find annual interest rate n 30 years quarterly payments

find annual interest raten 30 years quarterly paymentsinterest rate compounded quarterlypv 1200000pmt -90000fv

  An american business requires to pay a 15000 canadian

selling quotes for foreign currencies in new

  Which one of the following is a drawback of cash dividends

Which one of the following is a drawback of cash dividends?

  Doublewide dealers has an roa of 10 a 2 profit margin and

doublewide dealers has an roa of 10 a 2 profit margin and an roe of 15. what is its total assets turnover? what is its

  What is the expected return and standard deviation

What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?

  Determine market average inflation

A five year treasury bond has a 5% yield. a 10-year treasury bond has a 6% yield. a 10-year corporate bond has an 8% yield. the market expects that inflation will average 2.5 percent over the next 10 years.

  What role does the weighted average cost of capital play

What role does the weighted average cost of capital play when determining a project's cost of capital?

  What is the yield that trevor would earn by selling

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $934.21. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,003.72, what is the yield that Trevor would earn by s..

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