What is the current price of hubbards common stock

Assignment Help Financial Management
Reference no: EM131308838

Hubbard Industries just paid a common dividend, D0, of $1.20. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.

Reference no: EM131308838

Questions Cloud

Saving for retirement with the first payment : Your client is 32 years of age. She wants to begin saving for retirement with the first payment to come the beginning of the year. She can save $6000 per year. She can invest in the stock market and earn 12% interest. How much money will she have at ..
What is the price of the firms perpetual preferred stock : Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.80 at the end of each year. If investors require an 6% return on the preferred stock, what is the price of the firm's perpetual preferred stock?
How much will their payment per month be : Ralph and Anne presently have $100,000 in their savings account if they wish to have $400,000 in 10 years while earning 10% interest, how much will their payment per month be?
Determining the risk considerations : You are the CEO of a company that has to choose between making a $100 million investment in Russia or Poland. Both investments promise the same long-run return, so your choice is driven by risk considerations.
What is the current price of hubbards common stock : Hubbard Industries just paid a common dividend, D0, of $1.20. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock?
What is the internal rate of return and net present value : Robert purchased a new copy machine for his business. The copy machine was purchased for $12,500 and is expected to generate the following cash flows for the next four years: What is the net present value? What is the internal rate of return? Should ..
How much of first payment applies to principal balance : On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 5.25 percent. The loan is to be repaid in equal monthly payments over 15 years. All taxes and insurance premiums are to be paid separately. The first payment is due on July 1. How ..
Cost of capital to the firm for the preferred stock : Your firm is planning to issue preferred stock. The stock is expected to sell for $98.74 a share and will have a $100 par value on which the firm will pay a 13.1 percent dividend. What is the cost of capital to the firm for the preferred stock?
Four stages of issue maturity : The questions for this section is, how did the industry deal/react to this issue using the four stages of issue maturity (latent, emerging, consolidating, and institutionalized) as described below.

Reviews

Write a Review

Financial Management Questions & Answers

  What equal payment amount would leave you indifferent

Would you rather pay $1,000,000 up front, then $500,000 each in the following two years;  -If the interest rate is 10%, what equal payment amount would leave you indifferent?

  Geometric return

The rate of return on Cherry Jalopies, Inc., stock over the last five years was 15 percent, 11 percent, −5 percent, 4 percent, and 8 percent. What is the geometric return for Cherry Jalopies, Inc.?

  What is the projects operating cash flow

The financial staffs of Cairn Communications have identified the following information for the first year of the roll-out of its new proposed service. What is the project's operating cash flow for the first year (t=1)?

  What will dividend yield-capital gains yield be in two years

Suppose a company has a net income of $1,000,000 and a plowback ratio of 40%. There are 50,000 shares of stock outstanding. The company plans to increase dividends by 22% each year for the next 2 years and then apply a 2.25% growth rate to dividends ..

  Identify what southwest airlines sought

Identify what Southwest Airlines sought to accomplish for its stakeholders

  Whats the future value of the initial

What's the future value of the initial $1,100 investment after 20 years? We assume the expected annual return is 8%.

  Debt-equity ratio of stock price and beta

The Black Knight has a debt-equity ratio of .6, a beta of 1.12, a stock price of $42 a share and a tax rate of 34 percent. The firm just paid an annual dividend of $.80 a share and plans to increase that amount by 3 percent annually in the future. Th..

  If market interest rates remain unchanged

You own a 5-year bond with a face value of $1,000 and a coupon rate of 5 percent with annual payments. The bond is currently worth $810.46. If market interest rates remain unchanged, what will be the value of the bond next year when there are 4 years..

  How much more is company worth switching to the new terms

LETU Inc. is considering modifying its credit terms from net 30 to net 45. They believed that although DIH (50 days) and DPO (60 days) will not change, it will result in a 7% increase in sales. LETU’s annual sales is $600 million and COGS equal 60% o..

  How do they earn their return on equity

Different companies have different financial ratios. So Return on Equity for any one company is the product of three ratios which may be quite different in value than the same three ratios for a different company.

  When computing the firm weighted average cost of capital

Theresa’s Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 a share, and 30,000 shares of common stock valued at $56 a share. What weight should be assigned to the commo..

  New issue of preferred stock

E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a 11.00 percent return on this stock, how much shoul..

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