What is the fair-value of a share

Assignment Help Finance Basics
Reference no: EM132731566

Omni Consumer Products just paid a dividend of 1.53 and anticipates a short term growth rate of 16% for year 1 and for year 2 (dividends 1 and 2).

Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 3%, what is the fair-value of a share if the required return is 13%?

Answer to two decimal places and no $ sign

Reference no: EM132731566

Questions Cloud

Find assertions in relation to the purchases account : Find Which assertions in relation to the Purchases account does this procedure MOST directly address? The payables manager is required to inspect the purchase
What is sultan incorporated wacc : What is Sultan Incorporated's WACC (in percent to two places) if it has $15,622 with 9% after-tax cost of debt, $7,539 with 7% cost of preferred, and $10,521
What the role and business implications of digital corporate : What the Role and business implications of digital corporate financial reporting (e.g., XBRL technology), and evidence of impact on key stakeholders
4MA008 Engineering Science Assignment : 4MA008 Engineering Science Assignment Help and Solution, University Of Wolverhampton - Assessment Writing Service - Determine the internal resistance
What is the fair-value of a share : Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 3%, what is the fair-value of a share if the require
Which of the causes a market to be weak-form efficient : Which of the causes a market to be weak-form efficient? Investors analysing past prices and buying shares they think are more likely to increase than decrease
What is the black model price of a european call option : What is the Black model price of a European call option on this futures contract, expiring on December 20 and with an exercise price of $46?
How many shares would have been issued from bond conversion : You learn from his notes in the new file that FixAll had issued 28,500. How many shares would have been issued from the bond conversion of July 1, 2023?
How many futures contracts do you need to sell : How many futures contracts do you need to sell to hedge the fund value?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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