What is the current value of the stock

Assignment Help Financial Management
Reference no: EM13948695

Nynet, Inc., paid a dividend of $3.99 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 17.0 percent, what is the current value of the stock?

Reference no: EM13948695

Questions Cloud

What impact on profit would result from dropping product c : What impact on profit would result from dropping Product C? Now what is the impact on profit if Product C is dropped?
What is the minimum price that she should accept : Suppose Sue values being her own boss at $10,000, and we are in the situation of Question 8 (she might get an Offer B next week). What is the minimum Offer A she should accept?
Per year simple interest : Your aunt lends you $5000 for 7 years at 9% per year simple interest; then the entire proceeds are invested for 13 years at 8% per year, compounded annually. How much money will your aunt have at the end of the entire 20-year period?
Briefly explain the underlying causes of the space race : Briefly explain the underlying causes of the Space Race between Russia and the United States. Why was it so important during the Kennedy era and beyond for the U.S. to win this race
What is the current value of the stock : Nynet, Inc., paid a dividend of $3.99 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 17.0 percent, what is the current value of the stock?
Market value weight of debt-value weight of preferred stock : Organic Produce Corporation has 7.6 million shares of common stock outstanding, 510,000 shares of 7.1 percent preferred stock outstanding, and 176,000 of 8.3 percent semiannual bonds outstanding, par value $1,000 each. What is the firm's market value..
Discussing your impressions of the xml eclipse tools. : Include your screen shots and 1 to 2 page paper with the paper from requirement 1 describing XML standards and the role of standards in effective use of XML tools and applications.
Should thomson accept the special order : Suppose that Thomson's distribution center at the warehouse is operating at full capacity. Should Thomson accept the special order? By how much will profit increase or decrease if the order is accepted?
How much did cass receive as a dividend payment : Cass purchased 100 shares of Polar Tek stock on Monday, September 3. Polar Tek paid its quarterly dividend of $.80 a share on Friday, September 28. The record date was Wednesday, September 5. How much did Cass receive as a dividend payment on Septemb..

Reviews

Write a Review

Financial Management Questions & Answers

  What are the no-arbitrage boundary conditions

What are the no-arbitrage boundary conditions for the value of a European vanilla Call option with strike price K1  - boundary conditions for the value of the European vanilla Call option

  Do you think there will be regulatory changes in the future

What is the likely impact of convergence on the insurance industry? Do you think there will be regulatory changes in the future? Why or why not?

  Life is expected with no anticipated value thereafter

A new computer server costs $860,000, delivered and installed. Annual operating costs are $32,000. A five year life is expected with no anticipated value thereafter. Given a required rate of return of 12%, what is the equivalent annual cost of the se..

  Equity capital and it has two equally-sized divisions

Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the corporate (composite) WACC is 12.0%.

  Properly evaluate projects of unequal lives

Which of the following methods of evaluating investment projects can properly evaluate projects of unequal lives?

  Explain the signalling theory of capital structure

Surf Rider Inc. has 5,000 bonds outstanding with a 6% annual coupon rate, 10 years to maturity, a $1,000 face value, and a market quote of 220%. The company’s 50,000 shares of preferred stock pay a $6 annual dividend, and sell for $120 per share. The..

  What would the annual yield to maturity be on the bond

Sweet Fruit, Inc. has a $1000 par value bond that is currently selling for $1280. It has an annual coupon rate of 9.90 percent, paid semi annually, and has 10-years remaining until maturity. What would the annual yield to maturity be on the bond if y..

  What is EV ratio

Jonah’s Fishery has EBITDA of $108 million. Jonah’s market value of equity and debt is $696 million and $84 million, respectively. Jonah has cash on the balance sheet of $65 million. What is Jonah’s EV ratio?

  How interest rates affect a forecast of foreign currencies

How would this affect a fundamental forecast of foreign currencies? How would this affect the forward rate forecast of foreign currencies?

  Rate of return and has a required discounted payback

Danny Zuteck is considering an investment which will cost him $120,000. The investment produces no cash flows for the first year. In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then to $75,000 for the followin..

  Compute the required return of the portfolio

You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .75, -1.2, .90, 1.3, 1.5. The risk free return is 4% and the market return is 9%. (Not a multiple choice problem) Compute the beta o..

  Liability insurance states-an intentional tort occurs

Motorcycles, ATVs, and other motorized vehicles should be covered by what policy? homeowners, automobile, recreational vehicle, single-user. Liability insurance states that: An intentional tort occurs when.

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