User Account

All Pages

What is most you would be willing to pay for alfa growth inc

Assignment Help Finance Basics
Reference no: EM131393917

Finance: Value of Common Stock, Expected Rate of return on Common Stock

Question

You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $56.06 per share. You will also receive a dividend of $2.66 per share at the end of the next year. If your required return on this stock is 12.96 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?

Reference no: EM131393917

Questions Cloud

What do you think of cbms cash position during budget period : What is the minimum line of credit that CBM will need? What do you think of CBM's cash position during the budget period? Do you see any concerns for the company in this regard?
Develop a campaign to persuade the target audience : Develop a campaign to persuade the target audience (Congressional Committee) to adopt the solutions that you identified.Should there be additional requirements for qualifying candidates for presidential elections?
Find what is your annualized holding period return : You sold all stocks today for $66.80. During that period the stock paid dividends of $2.29 per share. What is your annualized holding period return (annual percentage rate)?
Discuss about the rational emotive behavior therapy : As a result of your intervention, as mentioned in question 1, what specific behavioral changes might you expect in Ethan as a result of employing these techniques? Again, be specific and detailed in your response.Rational Emotive Behavior Therapy.
What is most you would be willing to pay for alfa growth inc : If your required return on this stock is 12.96 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?
Design an exam with your team about the five schedules : Imagine you are the instructor of this course, and you are tasked with designing a multiple-choice exam covering the various schedules of reinforcement, behavior patterns, and possible outcomes, both partial and continuous.Design an exam with your..
Compute at sbc''s dol dfl and dtl : Smith Bottling Company (SBC) expects this year's sales to be $560,000. SBC's variable operating costs are 75 percent of sales and its fixed operating costs are $90,000. SBC pays interest on its debt equal to $30,000 per year and its marginal t..
What are the stages of the general adaptation syndrome : What are the stages of the General Adaptation Syndrome (GAS) and what does the GAS mean for us in our lives (give an example)? What does Robert Sapolsky mean when he uses of the term anticipatory stressors? Discuss how does that concept relate to..
What is the firm''s degree of financial leverage (dfl) : The CFO determined that the firm's degree of operating leverage (DOL) is 3× at sales equal to $900,000. She also determined that, if sales are actually $945,000, EPS will be $2.60 rather than the forecasted value of $2.00. What is the firm's degre..

Reviews

Write a Review

Finance Basics Questions & Answers

  A stock is expected to pay 125 per share every year

a stock is expected to pay 1.25 per share every year indefinitely and the equity cost of capital for the company is

  What would the after-tax cash flow in year three

What would the after-tax cash flow in year three

  Merger analysis-identify two success mergers

Analyze the successes and failures of mergers by addressing following: a) Determine two organizations that have successfully merged.

  Target an interest rate and the demand for money increases

Assume that the Fed is targeting an interest rate and the demand for money increases. - Explain why the money supply will increase.

  The purchase of a jack up oil rig capable of standing in

the purchase of a jack up oil rig capable of standing in 325 ft of water costing 29500000. a significant relocation

  What is the change in net working capital between 2006 n 07

Use the attached financial statements to answer the below question. What is the change in net working capital between 2006 and2007?

  Probability that two trucks will be selected

An automobile manufacturing plant produced 29 vehicles today: 10 were sedans, 10 were vans, and 9 were trucks. Plant managers are going to choose two of these vehicles for thorough inspection. The first vehicle will be chosen at random, and then t..

  Discuss the effect on stock market investor confidence

discuss the effect on stock market investor confidence should bank customers individuals and businesses alike lose

  Which project should accepted based on payback decision rule

Project B has an expected payback period of 3.6 years with a net present value of $8,400. Which projects should be accepted based on the payback decision rule?

  If the company consists of 5 million per day in collections

normas cat food of shell knob ships cat food throughout the country. norma has determined that through the

  Consumer financial protection bureau

As a result of the Financial Reform Act of 2010, the Consumer Financial Protection Bureau was established and housed within the Federal Reserve. - Explain the role of this bureau.

  Reimburse for actual operating costs

A healthcare firm's investment of $1,000 in a piece of equipment will reduce labor costs by $400 per year for the next 5 years. Thirty percent of all patients seen by the firm have a third-party payer arrangement that pays for capital costs on a r..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd