What is its stock price

Assignment Help Finance Basics
Reference no: EM13263964

ABC Inc. is expected to pay $1.51 dividend at the end of the year and is expected to pay the same amount of dividend forever. What is its stock price, assuming it has a required return of the stock is 9%? Please show work.

Reference no: EM13263964

Questions Cloud

What is the companys current stock price : XYX Company is expected to pay a dividend of $1.60 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. If the required rate of return on the common stock is 10.33% What is the..
What is the velocity of the wood block : A 0.07 kg bullet traveling at 602 m/s hits a 7.3 kg block of wood and stays in the wood. What is the velocity (speed)of the wood block
What should be equal annual deposits : You plan to make twenty equal yearly deposits beginning at the end of first year into this account. If the account pays interest at 10 percent p.a., what should be equal annual deposits?
The analysis must be supported by qualitative and quantity : You should address the pertinent areas of consideration.Analyze the considerations and determine their relative importance.Investigate all the possibilities of how the quantitative methods are used in the case study.
What is its stock price : ABC Inc. is expected to pay $1.51 dividend at the end of the year and is expected to pay the same amount of dividend forever. What is its stock price, assuming it has a required return of the stock is 9%? Please show work.
Find the horizontal component of the earths magnetic field : A circular coil of 4 turns and a diameter of 30.0 cm is oriented in a vertical plane with its axis perpendicular to the horizontal component of the Earth's magnetic field. find the horizontal component of the Earths magnetic field
What is the depreciable cost basis : The net working capital would increase by $12,000 initially, but would be recovered at the end of the project's 4-year life. EL Company's marginal tax rate is 35% and WACC is 11.5%.
How many dollars of revenue must the company generate : Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $178,300, how many dollars of revenue must the company generate in order to reach the break-even point?
How many hours will it take to complete grading operation : A motor grader requires two passes at 2 miles per hour, two passes at 3 miles per hour, and one pass at 4 miles per hour to accomplish the work; job efficiency is 0.80. How many hours will it take to complete the grading operation for the 2-mile p..

Reviews

Write a Review

Finance Basics Questions & Answers

  Investments in the portfolio

According to portfolio theory, people should hold more than one asset in their portfolios. The idea is that if some investments do poorly, other investments in the portfolio can compensate for the poor investments.

  Evaluation of ratios for given financial data''s

Evaluation of ratios for given financial data's and Inventory Turnover and Days' Sales in Inventory

  Adjustable rate mortgages and rate on fixed rate mortgages

How does the initial rate on adjustable-rate mortgages different from the rate on fixed-rate mortgages? Explain your reasoning.

  Personal financial planning

John inherited $2 million in an IRA, which comprised of the entire estate from his father. He promptly withdrew the funds. The appropriate marginal tax rate was 28%.

  Calculation of cost of equity using capm approach

Calculation of cost of equity using CAPM approach and Treat Redeemable preferred securities of subsidiary

  Calculate the degree of operating and combined leverage

An analytical income statement for Detroit Heat Treating is given below. It is based on an output (sales) level of 40,000 units.

  Present value of all future earnings

You are running a hot internet company. Analysts predict that its earnings will grow at 30% for each year for the next five years. After that, as competition rises, earnings growth is expected to slow to 2% per year and continue at that level fore..

  Calculate ebit-eps coordinates for each of the structures

Calculate two EBIT-EPS coordinates for each of the structures and indicate over what EBIT range, if any, each structure is preferred

  Treasury responsibilities

What is meant by this term and how should the CFO be involved in this area? Also, how does "risk management" relate to treasury responsibilities?

  Calculate the market-to-book ratio for lab r doors

Market Value Ratios Lab R Doors' year-end price on its common stock is $43. The firm has total assets of $78 million, the debt ratio is 57%, no preferred stock, and there are 4.3 million shares of common stock outstanding. Calculate the market-to-..

  What apr rate should you charge your customers

What APR rate should you charge your customers? Round your answer to two decimal places.

  Expected effective financing rate

Suppose the U.S. interest rate is 7.5%, the New Zealand interest rate is 6.5%, the spot rate of NZ$ is $.52, and the one year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the ef..

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