What is a share of the stock worth today

Assignment Help Financial Management

Reference no: EM131361015

You own shares of Old World DVD Company and are interested in selling them. With so many people downloading music these days, sales, profits, and dividends at Old World have been declining 9 percent per year. The firm just paid a dividend of $1.80 per share. The required rate of return for a stock this risky is 14 percent. If dividends are expected to decline at 9 percent per year, what is a share of the stock worth today? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.20.) Worth of share of stock $

Reference no: EM131361015

Questions Cloud

Management plans to issue seven-year zero coupon bonds : Rockinghouse Corp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $445.06. Assuming annual coupon payments, what is the yield to maturity on these bonds? (Round intermediate calcu..

Identify key players in the creative media industries : Identify key players in the creative media industries and discuss their interplay with wider cultural, economical, political and geographical phenomena.

Extension stops working and a person : A person placed on an extension of 25 lights that are placed in a series circuit, the extension stops functioning when one or more of the 25 lights are going bad. The extension stops working and a person examines it and informs them that it has fo..

What is the current density through this junction : Consider a p--n junction at 295 K with a drift current density of 6 × 10-4 A/m2

What is a share of the stock worth today : You own shares of Old World DVD Company and are interested in selling them. With so many people downloading music these days, sales, profits, and dividends at Old World have been declining 9 percent per year. The firm just paid a dividend of $1.80 pe..

What is the average number of prescriptions in the queue : The pharmacist at Arnold Palmer Hospital, Wende Huehn-Brown, receives 12 requests for prescriptions each hour, Poisson distributed. What is the average number of prescriptions in the queue

By what amount does the interest tax shield : Summit Builders has a market? debt-equity ratio of 1.451.45?, a corporate tax rate of 30 %30%?, and pays 9 %9% interest on its debt. By what amount does the interest tax shield from its debt lower? Summit's WACC? WACC is lowered by nothing?%.

What is the after-tax dividend : Assume that Grand Canyon Medical Center, a for-profit hospital, has $8 million in taxable income for 2016 and its tax rate is 28%. Given this information, what is the firm's net income? Suppose the hospital pays out $750 thousand in dividends. A stoc..

Analyze current european standards for it area or subarea : Critically analyze current European and United States industry standards or recommendations for any Information Technology (IT) area or subarea (e.g., intrusion detection, data recovery, data retention, intrusion prevention, network infrastructure..

User Account

All Pages