What is mi stock price today

Assignment Help Finance Basics
Reference no: EM133121425

Problem 1

Micro Inc. (MI) just paid a dividend of $2.00/share. MI has a new technology that is expected to go on the market this year, and their dividend is expected to grow at 10% per year for the next ?ve years (i.e., the growth rate applies only to the next ?ve dividend payments). After that, the dividend is not expected to increase for the foreseeable future (i.e., forever). The next dividend will be paid exactly in one year. Assume investors require a 10% rate of return (EAR) for MI's stock.

a) What is MI's stock price today?

b) What is MI's stock price in three years from now (right after the dividend payment)?

c) What is MI's stock price in twenty years from now (right after the dividend payment)?

Reference no: EM133121425

Questions Cloud

What is the market price : Malta Inc. offers a bond with an annual coupon rate of 4.5 percent, What is the market price of a $1,000 face value bond
Credit card debt to investment loan : The table below is Tobias and Antonia's balance sheet as of December 31, 2021.
How much may she deduct on her tax return : If Jessica uses the standard mileage method, how much may she deduct on her 2020 tax return (miles were incurred ratably throughout the year)
What is the after-tax amount of the investments : For each of the four alternatives, what is the after-tax amount of the investments? Assume that the contributions are at the end of each year.
What is mi stock price today : Micro Inc. (MI) just paid a dividend of $2.00/share. MI has a new technology that is expected to go on the market this year, and their dividend is expected to g
Factors behind making correct financial decisions : Please include at least 2 linked articles, 1 linked video, and a Graph analysis(table, chart, diagram/graph, column chart, pie graph)for this question.
What is the yield to maturity : The bond is currently priced at $1,046.92 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity
Overview of the risk management project : Identify the FORD company which which could benefit from a risk management strategy
What is the length of operating cycle : On average, Furniture & More is able to sell its inventory in 27 days. The firm takes 87 days on average to pay for its purchases. On the other hand, its averag

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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