What is the constatnt rate the stock is expected

Assignment Help Finance Basics
Reference no: EM13257511

Stock price is $40 and it recently paid $1.20 dividend. This dividend is expected to grow by 15% for the next 3 years, and then grow forever at a constat rate, g. If the required rate of return is %12, what is the constatnt rate the stock is expected to grow at after year 3?

Reference no: EM13257511

Questions Cloud

Explain a linear polypeptide composed of 10 amino acids : The net charge of a polypeptide at a particular pH can be determined by considering the pKa value of each ionizable group in the protein. For a linear polypeptide composed of 10 amino acids, how many (alpha-carboxyl plus alpha-amino) groups must b..
Boeing cash flow from operating activities : What was Boeing's cash flow from operating activities for the fiscal year?
How old are these bones : The bones of a saber-toothed tiger are found to have an activity per gram of carbon that is 15.3% of what would be found in a similar live animal. How old are these bones (in years)
Explain a sample of gas has an initial volume : A sample of gas has an initial volume of 2.8 L at a pressure of 755 mmHg. If the volume of the gas is increased to 3.7L, what will the pressure be
What is the constatnt rate the stock is expected : Stock price is $40 and it recently paid $1.20 dividend. This dividend is expected to grow by 15% for the next 3 years, and then grow forever at a constat rate, g. If the required rate of return is %12, what is the constatnt rate the stock is expec..
How does the baby boom of the 1950s : How does the "Baby Boom" of the 1950s impact the demand for health care now and moving forward in the 2020s, 2030s, and beyond?
How much cash was paid to employees : Wages expense for a period was $69,000. Wages payable increased during the period by $10,500. How much cash was paid to employees during the period?
What is the half-life of this substance : Suppose that you start with 1.41 mg of a pure radioactive substance and 2.30 h later determine that only 0.252 mg of the substance remains
Calculate operating income or loss at sales volume : Calculate the operating income or loss at a sales volume of30,000 tennis balls. Calculate the number of tennis balls that must be sold to earn aprofit of $80,000.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the income with tax return

Linda Anderson earned a 10 percent interest in the capital of Doty Associates, a partnership, for services rendered. Doty's net assets at July 1 had a basis of $70,000 and a fair market value of $100,000.

  Estimate the firms projected needs

In November of each year the CFO of Barker Electronics starts the financial forecasting process to estimate the firm's projected needs for new financing during the coming year.

  Training for foreign assignment

From a diversity standpoint, what do you need to know about your targeted learners and the training requirements needed prior to taking an assignment in a foreign country.

  Determine the dividend paid

A share of stock is currently selling for $31.80. If the anticipated constant growth rate for dividends is 6% and investors are seeking a 16% return, determine the dividend just paid?

  Computing today investment amount

John Hsu desires to start the business in 10 years. He hopes to have $100,000 at that time to invest in the business. How much will he have to invest today to acomplish his target?

  Airbus plant relocation

Airbus announced it was building a new plant in Alabama. Can you assist me in answering the following questions based on information in conjunction with Foreign Direct Investment.

  Estomation of npv

Suppose a Company is planning a purchase of equipment for $20,000. The equipment is expected to generate net cash inflows of $6,250 for the next five years.

  Correct statements regarding fiduciary responsibility

Determine the correct statements regarding fiduciary responsibility.

  An analyst with river investment

David Wright CEA. An analyst with River Investment is considering buying a Montrose Cable Company corporate bond.

  What is the cash ratio

Your firm has cash of $3,800, accounts receivable of $9,600, inventory of $33,100, and net working capital of $1,100. What is the cash ratio?

  Objective type questions on bond valuation

Objective type questions on bond valuation and An increase in the level of wealth in the economy

  Calculate current and expected stock price

The Jackson-Timberlake Wardrobe Corporation just paid a dividend of $1.60 per share on its stock. The dividends are expected to rise at a constant rate of 6 percent per year indefinitely.

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