What is the intrinsic value

Assignment Help Finance Basics
Reference no: EM131533095

Thai One On, a national Thai restaurant chain, expects to see a 25% annual increase in dividends over the next three years. After that, analyst expect dividends to fall to a constant growth rate of 5% thereafter. Thai One On's last dividend was paid $1.40 per share. Also since there will be a few more Thai chains popping up shortly, investors see some risk and require a return of 12.5%. Based on this information, what is the intrinsic value (current price per share) of Thai One On's stock? Hint: Follow the three steps.

Reference no: EM131533095

Questions Cloud

Populate the stock ticker combobox control : Populate the stock ticker ComboBox control: The user should start with a ComboBox control that displays the complete list of stock tickers retrieved.
Check your net income with the instructor : Best Brands' general ledger and supplementary records at the end of its current period reveal the following.
The largest segment of the us population : The largest segment of the U.S. population, the "baby boomers," are moving into middle adulthood and, in some cases, even becoming grandparents.
Prepare an REA Data Model for the Revenue Cycle : Using the information provided for Techarati, Inc. prepare an REA Data Model for the Revenue Cycle, including cardinalities
What is the intrinsic value : Based on this information, what is the intrinsic value (current price per share) of Thai One On's stock? Hint: Follow the three steps.
How much must you pay for the bond : Accrued interest is determined using 30/360 convention. How much must you pay for the bond?
Prepare a forecasted income statement : Opening feature about Heritage Link Brands. Assume that Selena and Khary Cuffe report current annual sales at approximately $10 million and disclose.
The study of psychology : Why is it important to learn statistics in the study of psychology?
Describe the goal of your synthesis : The thesis statement should describe the goal of your synthesis. (informative or argumentative)In the introduction you will give background information

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