What is current value

Assignment Help Finance Basics
Reference no: EM132200301

A firm recently paid $0.45 annual dividend. The dividend is expected to increase by 10 percent in each of the next four years. In the fourth year, the stock price is expected to be $80.

If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132200301

Questions Cloud

Create a variety of interesting motions : Write an interactive OpenGL program that choreographs the motion of several two-dimensional geometric objects in a rectangular viewport.
Display the motion of a fan cart on a low-friction track : Write an iteractive computational model that predicts and displays ( as a real-time animation) the motion of a fan cart on a low-friction track.
Ask the user for his two favorite things : Ask the user for his two favorite things. Change the ordered list so that it replaces the previous content with these values.
What would be the stock price in five years : If the growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio
What is current value : If the required return for this stock is 13.5 percent, what is its current value? (Do not round intermediate calculations. Round your answer to 2 decimal places
Discuss the demand for and supply of crude oil : Discuss the demand for and supply of crude oil in the world market right now. Discuss the causes for shortage (Excess demand) and surplus (Excess supply).
Determining the dividend per share : Waller Co. paid a $0.137 dividend per share in 2000, which grew to $0.55 in 2012. This growth is expected to continue.
Devise a two-part pricing plan in detail : A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given.
Identify the costs of financial distress : Identify the costs of financial distress. Consider both bankruptcy related costs and the costs associated with distorted decision-taking

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the pros and cons of outcomes

Evaluate each of these alternatives. On the basis of the limited information presented, recommend the one you feel is best. If Casinos International's stock price rises to $60, what will happen under alternatives 2 and 3? Evaluate the pros and cons ..

  Pricing of financial services

Financial services are very critical aspect whose value cannot be under-estimated. Explain the challenges faced when pricing of financial services.

  What is the weighted average cost of capital for project

What is the weighted average cost of capital for this project?

  Define the international fisher effect

Why is the approximate form of the Fisher Effect frequently used instead of the precise formulation? Does this introduce significant analysis error?

  What is the minimum number of billable hours each year

Your company has purchased a new track hoe for $100,000. The track hoe can be billed out at $95.00 per hour, has an hourly operation cost of $33.00, and has a useful life of four years. At the end of four years the track hoe has a salvage value of $2..

  Compute the depreciation expense associated

The new machine falls into the MACRS 5-year class. Compute the depreciation expense associated with the new machine for the next five years?

  Provide a comprehensive explanation of foreign exchange

Provide a comprehensive explanation of foreign exchange markets. Be sure to include examples of how forward markets and spot markets operate.

  What are these payments worth

Your parents are giving you $190 a month for 4 years while you are in college. At an interest rate of .45 percent per month, what are these payments worth

  What is basic earning power ratio

Its total assets at the end of the year was $15,000,000. What is its Basic Earning Power ratio?"

  Charting to pick and keep an investment

Answer the following questions in 300+ words. Cite sources used in APA format. 1. Is it best to use technical analysis or charting to pick and keep an investment? Why or why not?

  Purchase an investment that will provide

An investor has an opportunity to purchase an investment that will provide $11,000 at the end of three years, and $50,000 at the end of five years.

  How can inflation affect the comparability of financial

How can inflation affect the comparability of financial ratios between firms?

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