What is the current price of its stock

Assignment Help Financial Management
Reference no: EM131502733

CX Enterprises has the following expected dividends: $1.07 in one year, $1.22 in two years, and $1.27 in three years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2% more than $1.27 and soon). If CX's equity cost of capital is 12.5%, what is the current price of its stock?

Reference no: EM131502733

Questions Cloud

According to the? dividend-discount model : According to the? dividend-discount model, what is the value of a share of Gillette stock if the? firm's equity cost of capital is 7.9%??
Firms market and book values per share differ : Bauer Software's current balance sheet shows total common equity of $5,125,000. By how much do the firm's market and book values per share differ?
What is the amount of the monthly mortgage payment : What is the amount of the monthly mortgage payment? How much do you need for the down payment?
How present values are affected by changes in interest rates : Explain how present values are affected by changes in interest rates.
What is the current price of its stock : CX Enterprises has the following expected dividends: If CX's equity cost of capital is 12.5%, what is the current price of its stock?
What is her portfolios beta : An individual has $40,000 invested in a stock with a beta of 0.5 and another $75,000 invested in a stock with a beta of 1.6. what is her portfolio's beta?
Debt and total invested capital ratio-sales : Had it reduced its assets by this amount and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the ROE have changed?
How much can its short-term debt increase without pushing : How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0?
What is mpis times-interest-earned ratio : What is MPI's times-Interest-earned (TIE) ratio?

Reviews

Write a Review

Financial Management Questions & Answers

  Plot set of feasible mean variance combinations of return

Plot the set of feasible mean-variance combinations of return, assuming that the two securities above are the only investment vehicles available.

  Economically sound and properly ranks projects

The ________ method is economically sound and properly ranks projects across various sizes, time horizons, and levels of risk, without exception for all independent projects. Modified IRR Profitability Index NPV Discounted Payback Period

  Discuss the concept of reliability

Discuss the concept of reliability. In your opinion, would the amounts reported by U.S. companies for property, plant, and equipment be more or less reliable than the current cost amounts reported by companies in England, Mexico, or elsewhere?

  What is the volatility implied by the price

The option expires on March 20, 2007. Estimate the price of a March 126 put.- What is the volatility implied by the price you estimate for this option?

  Planning for retirement

Your client is planning for retirement. Calculate the size of the monthly contributions he will need to make to achieve his retirement goals. He is hoping to retire in exactly 32 years from today. During the next 32 years, funds in the retirement acc..

  The amount of the cash flow in each of the seven years

what is the amount of the cash flow in each of the seven years?

  Calculate the base-case cash flow and npv-break-even point

We are evaluating a project that costs $1,120,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Calculate the accounting break-even point. Calculate the base-case cash ..

  What is the growth rate inspected to be in the future

One year ago, the stock price was $245. Today, the stock price is $257. Over the year, the firm distributed Dividends of $1.25 per share. What is the total return of the stock over the past year? Next year’s Dividend, per share, is expected to be $2...

  Industry-low-industry-average-industry-high cost benchmarks

The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of each issue of the GLO-BUS Statistical Review

  What is the value of fun toys equity

Fun Toy Corporation estimates that there is 25% chance of a recession economy next year, a 50% chance of a normal economy next year, and a 25% chance of a boom economy next year. The corporation will exist until the end of next year and then it will ..

  Water filtration system to assist in circuit board

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The system costs $60,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and mainten..

  In seeking to increase revenues

Mt. Sinai Hospital in New Orleans is large, private, 600-bed facility-complete with laboratories-operating rooms. In seeking to increase revenues.

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