What is the current share price

Assignment Help Financial Management

Reference no: EM131308215

Marcel Co. is growing quickly. Dividends are expected to grow at a 22 percent rate for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter.

If the required return is 12 percent and the company just paid a $3.70 dividend. what is the current share price? (Do not round your intermediate calculations.)

Reference no: EM131308215

Questions Cloud

When using a present value of an annuity : When using a present value of an annuity table: You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment? Interest rates are quoted by stating the ____ followed ..

What do you notice about these two? break-even : Alpha Company is looking at two different capital? structures, one an? all-equity firm and the other a levered firm with ?$2.88 million of debt financing at 8% interest. Find the? break-even EBIT for Alpha Company using EPS if there are no corporate ..

Example of earned income : Yield to Maturity (1BI) Bauer Inc's bonds currently sell for $1,275. They pay a $120 annual coupon and have a 20-year maturity and a par value of $1,000 , but they can be called in 5 years at $1,120. What is their yield to maturity (YTM)? Which of th..

The present value of an annuity will be decreased by : The principle behind time value of money is based on the fact that: Holding all other variables constant, an increase in the interest rate will cause ____ to decrease. The present value of an annuity will be decreased by:

What is the current share price : Marcel Co. is growing quickly. Dividends are expected to grow at a 22 percent rate for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent and the company just paid a $3.70 divid..

What must the coupon rate be on bonds : Ashes Divide Corporation has bonds on the market with 19 years to maturity, a YTM of 6.4 percent, and a current price of $1,206.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?

Differences between capital markets and money markets : The principal differences between capital markets and money markets are that: Which of the following best describes the concept of maturity matching? The sale of a 10-year bond by one investor to another investor would be considered a transaction tha..

Evaluate challenges that for-profit public companies face : Evaluate the challenges that for-profit public companies face from recurrent scandals, political attacks and alternative corporate structures such as the B-corp. Staind, Inc., has 7 percent coupon bonds on the market that have 8 years left to maturit..

Housing values are appreciating at rate : When comparing the buying power of a salary offer of $52,000 in Boston with a $49,000 offer in Los Angeles, the Boston salary offer would buy ____ of goods and services in Los Angeles, assuming the index was 130.6 for Boston and 114.9 for Los Angeles..

User Account

All Pages