What is the constant growth rate

Assignment Help Operation Management
Reference no: EM132819980

Mastercard Inc.'s stock has a required return of 10% and the stock is currently priced at $100 per share. Mastercard just paid a dividend of $1.5, and they have announced that they plan to increase its dividend payment at a rate of 40% per year for the next 3 years. After Year 3, they expect the dividend growth rate to slow down from the 40% to a more modest constant growth rate of X% per year going forward forever. What is the constant growth rate that Mastercard is expecting after Year 3 (i.e., what is X)?

Reference no: EM132819980

Questions Cloud

What is the future value of annuity payment : What is the future value of a $820 annuity payment over five years if interest rates are 9 percent
Journalize the entry on july and the annual adjusting entry : Ling Co. pays $12,400 to Marsh Insurance Co. For Ling Co., journalize the entry on July 1 and the annual adjusting entry on December 31.
Describe the two primary historical schools of thought : Using 500-700 words discuss in detail the two primary historical schools of thought presented in this week's lesson pertaining to criminology.
What the predicted fee income for next year is : What The predicted fee income for next year is? The firm currently has a 30% market share and this is expected to grow to 40% next year.
What is the constant growth rate : What is the constant growth rate that Mastercard is expecting after Year 3 (i.e., what is X)?
How much must you put into that account monthly : You estimate you can earn 7% compounded quarterly on the investment account. How much must you put into that account monthly to reach your goal
Write persuasive essay based on policy or leadership issues : Write a 1,300-1,750-word (excluding title page and reference list) persuasive essay based on policy or leadership issues in corrections.
What was the exchange rate after devaluation : The Turkish government announced on February 21st that the lira would be devalued by 20%. What was the exchange rate after devaluation
What are some of the pros and cons of using the ama : What are some of the pros and cons of using the AMA (advanced measurement approach)? Please provide references.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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