What is the expected value

Assignment Help Finance Basics
Reference no: EM131387596

ABC Inc., is expected to pay an annual dividend of $2.2 per share next year. The required return is 19.9 percent and the growth rate is 5 percent. What is the expected value of this stock five years from now?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131387596

Questions Cloud

How should carvers estate be distributed : The codicil was witnessed by Roy White and Harold Brown. John Carver died September 1, 2009, and the will and codicil were admitted to probate. How should Carver's estate be distributed?
Producer who is attempting to maximize wealth : “A producer who is attempting to maximize wealth (or profit) will never knowingly set their output where the demand for their product is ‘inelastic.’” Refute or prove this statement. Does your answer depend on whether the producer is a price taker or..
How should the estate be distributed : In each instance, Edwin stated that he had signed the document but did not state that it was his will. Edwin returned to his office and placed the will in his safe.- Subsequently, Edwin died, survived by Kurt, his only heir-at-law. How should the e..
Best estimate of the stock current market value : ABC just paid a dividend of D0 = $2.5. Analysts expect the company's dividend to grow by 33% this year, by 24% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 16%. What is the best estimate of..
What is the expected value : ABC Inc., is expected to pay an annual dividend of $2.2 per share next year. The required return is 19.9 percent and the growth rate is 5 percent. What is the expected value of this stock five years from now?
What interest if any does mary acquire in blackacre : The validly executed will of John Dane contained the following provision: - What interest, if any, does Mary acquire in Blackacre?- What interest, if any, does Henry acquire in the oil business?
What are the critical issues or problems : A case is usually a "description of an actual situation, commonly involving a decision, a challenge, an opportunity, a problem or an issue faced by a person or persons in an organization." In learning with case studies, the student must deal with ..
Find the most reduced state diagram : (State Assignment) Given the next-state function of the finite state machine shown in Figure Ex. 8.11, use the implication chart method to find the most reduced state diagram.
What is the dividend yield : If D1 = $5.84 and P0 = $83.83, what is the dividend yield?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the monthly contribution margin

Determine the monthly breakeven quantities during the first year of nachos sales, assuming constant sales mix of 1 hotdog and 2 units of nachos.

  What is the nature of the effects of the factors studied

What is the nature of the effects of the factors studied in this experiment? What strategy would you use to reduce invoice errors, given the results of this experiment?

  The bond presently sells for 925 and the companys tax rate

several years ago the metalusa inc. sold a 1000 par value noncallable bond that now has 20 years to maturity and a 7.00

  Advantages and disadvantages to us corporation

What are the advantages and disadvantages to a U.S. corporation which employs currency options on euros rather than a forward contract on euros to hedge its exposure in euros?

  What is the annual benefit of parents gifting bonds

What is the annual benefit of parents gifting bonds with annual investment income of $300 to their 10-year-old child if the parents are in the 35 percent and the child is in the 15 percent bracket?

  What was the firm times interest earned ratio

Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times interest earned (TIE) ratio?

  Ed sloan wants to withdraw 25000 including principal from

ed sloan wants to withdraw 25000 including principal from an investment fund at the end of each year for five years.

  Company most important strengths

Based on this case and the two previous Graeter's cases, what are the company's most important strengths? Can you identify any weaknesses that might affect its ability to grow?

  Hwever higher 150 million in new debt will also create 20

a 500 million firm is financed by 250 million in debt and 250 million in equity. it issues 150 million in debt and

  What is program trading and why is it so controversial

What is the implied repo rate? Identify and explain some factors that make the execution of stock index futures arbitrage difficult in practice ? What is program trading? Why is it so controversial?

  What are the essential conditions for corrosion

What combination of factors can lead to stress cracking of a bolt? What is the most common source of absorbed hydrogen?

  Find the npv if pretax cost savings are 195600 per year at

your firm is contemplating the purchase of a new 573500 computer-based order entry system. the system will be

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