What is the intrinsic value of stock

Assignment Help Financial Management
Reference no: EM131541175

Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $70.00, and ZZZ-Best consistently pays an annual dividend of $8.00. Based on your analysis, you estimate that the stock has a required rate of 18.00%. What is the intrinsic value of this stock?

$64.43

$66.10

$61.86

$67.35

$68.73

Reference no: EM131541175

Questions Cloud

What would be your monthly payment : A stock has an expected return of 12.38 percent. The beta of the stock is 1.4 and the risk-free rate is 5 percent. What would be your monthly payment?
Market index is well-diversified portfolio : APT: Say a given market index (M) is a well-diversified portfolio and has an expected return of 15%.
Examine differential social organization a collective action : Discuss/debate your position pertaining to biological and psychological perspectives of explaining crime. Also, examine Differential social organization.
Unemployment rate and inflation : How does the current GDP, Unemployment rate and Inflation compare to both the short-run and long-run averages in Canada.
What is the intrinsic value of stock : Based on your analysis, you estimate that the stock has a required rate of 18.00%. What is the intrinsic value of this stock?
Describe the concept of interest with an example : Describe the concept of interest with an example. What is the difference between nominal rate of interest and the real rate of interest?
Significant amount of knowledge : Question: or this discussion, think about where you work or a business you have a significant amount of knowledge about.
Develop a pricing strategy for your chosen product : Develop a pricing strategy for your chosen product/service. Discuss what factors will impact your pricing strategy
Capital budgeting criteria-ethical considerations : A mining company is considering a new project. Because the mine has received a permit, the project would be legal; Calculate the NPV and IRR with mitigation.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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