What is the current value of the companys stock

Assignment Help Financial Management
Reference no: EM13889385

JJ Industries will pay a regular dividend of $2.50 per share for each of the next four years. At the end of the four years, the company will also pay out a $61 per share liquidating dividend, and the company will cease operations. If the discount rate is 8 percent, what is the current value of the company’s stock?

Reference no: EM13889385

Questions Cloud

Which type of placement is usually preferred by issuing firm : Discuss the various issues that must be considered in selecting an investment banker for an IPO. Which type of placement is usually preferred by the issuing firm? Why?
What was the firms operating cash flow : The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account and $2,660,000 in the additional paid-in surplus account. What was the firm’s operating cash flow during 2014?
Management limited the search for this plant : a. Which of these three locations yields the smallest total travel distance, based on Euclidean distances?
Impact of trust interference and information sharing : Impact of Trust Interference and Information sharing on performance of hospital Supply Chains - I want to do analysis in excel and It should be with Anova.
What is the current value of the companys stock : JJ Industries will pay a regular dividend of $2.50 per share for each of the next four years. At the end of the four years, the company will also pay out a $61 per share liquidating dividend, and the company will cease operations. If the discount rat..
Work patterns in the housekeeping department : Management has studied work patterns in the housekeeping department and estimates the number of hours to be worked as follows. Hours worked = (1,500 hours per month) + (0.50 × RVUs). For the coming month, management expects RVUs to be 5,800. What sho..
Injuries sustained after a freak street sweeper accident : You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work.  If the interest rate yo..
Identify the segment you will target with this campaign : Communication objectives: Specify the communication objective(s) for this campaign and Target market: Identify the segment(s) you will target with this campaign
Explain about intrusion detection systems generating alerts : Anomaly-based intrusion detection systems generate alerts based on deviations from "normal" traffic.

Reviews

Write a Review

Financial Management Questions & Answers

  Taxpayer dies four years after conveyance

Taxpayer had an insurance policy on Taxpayer’s life on which Taxpayer had paid premiums for ten years. The proceeds of the policy are $200,000 and are to be paid to Sibling on Taxpayer’s death.  What are the estate tax consequences if Taxpayer dies t..

  Plan to pay dividends-what is the price of stock

Currently retaining all of their earnings and does not plan to pay dividends for the next 5 years. In the 6th year they plan on paying $0.65 per share with the dividend expected to grow at 6.25% per year. The company has a required return of 15%. Wha..

  Question 1the current yield on a 5000 8 percent coupon bond

question 1the current yield on a 5000 8 percent coupon bond selling for 4000 is5.8.10.20.none of the above.question

  What is the expected return of the two asset portfolio

An investor wants to form a two asset portfolio consisting of Treasury bills with a return of 1.5% and a risky portfolio with a risk premium of 12.7% and a standard deviation of 22%. The investor wants the standard deviation of the two asset portfoli..

  How much is the bonds face value-bonds coupon

You are considering purchasing a 15-year 8% unsecured bond at a price of $960: How much is the bonds face value? How much is the bonds coupon? What is the bonds current yield?

  On a statement of cash flows of a financially healthy

On a statement of cash flows of a financially healthy company, net income should ordinarily be:

  Calculate the equivalent annual value of these revenues

An engineer has generated an oil production forecast for a group of wells. According to this forecast, the wells produce 30,000 barrels in the first year. Starting the second year, production declines by 2,000 barrels per year for 4 years. Starting t..

  Ensure ethical operation of the business

Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how limited access can satisfy the purpose of internal control and (2) provide an example of how this control could be i..

  Initial price-compute the percentage total return

Suppose a stock had an initial price of $77 per share, paid a dividend of $1.3 per share during the year, and had an ending share price of $83. Compute the percentage total return.

  Expects future economic development in the community

A land broker has indicated that she expects future economic development in the community where the land is located to lead to substantial appreciation in the land’s value over the next decade. The cost of the land is $200,000. What is the NPV and is..

  The present value of the annuity

A 20-year annuity pays $2,350 per month, and payments are made at the end of each month. If the interest rate is 13 percent compounded monthly for the first eight years, and 10 percent compounded monthly thereafter, what is the present value of the a..

  What types of bubbles were discussed in the bubble decade

What types of bubbles were discussed in The Bubble Decade? Given that our markets in the U.S. are supposed to be fairly efficient, how can such bubbles exist and why do new bubbles keep occurring?

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