What is the market value of the company stock

Assignment Help Financial Management
Reference no: EM131551110

Burnes, Inc. is a mature firm that is growing at a constant rate of 5.5 percent per year. The last dividend that the firm paid was $1.50 per share. If dividends are expected to grow at the same rate as the firm and the required rate of return of Burne's stock is 12 percent, what is the market value of the company's stock?

Reference no: EM131551110

Questions Cloud

Compute the net interest expense to be reported : Compute the net interest expense to be reported for this note and related swap transactions as of December 31, 2014.
What is standard deviation of the portfolio : If the correlation between the returns of Security F and Security G is .30, what is the standard deviation of the portfolio?
What is an estimate of brandtly price per share : Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. What is an estimate of Brandtly's price per share?
What is projects modified internal rate of return : what is the projects modified internal rate of return? Should the firm purchase the project?
What is the market value of the company stock : Burnes, Inc. is a mature firm that is growing at a constant rate of 5.5 percent per year. what is the market value of the company's stock?
What is the implied value of each warrant : Assuming annual interest payments, what is the implied value of each warrant?
Revenue-producing patient services departments : These costs must be allocated to three revenue-producing patient services departments using the direct method.
Describe in detail the development of the derivatives market : Describe in detail the development of the derivatives market in the United States. Describe in detail the development of the derivatives market in Japan.
Expected return and standard deviation for portfolio : calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A,

Reviews

Write a Review

Financial Management Questions & Answers

  Find scholarly report that discuss ibm financial performance

find two scholarly reports that discuss IBM's financial performance during this period and discuss how those professional reports correlate with what you found in your analysis.

  Data for use in developing the budgeted income statement

The budget director of Gold medal athletic co., with the assitance of the controller, treasurer, production manager and sales manager, has gathered the following data for use in developing the budgeted income statement for march 2016

  Implied by the two outstanding debt issues

Vedder, Inc., has 6.5 million shares of common stock outstanding. The current share price is $61.50, and the book value per share is $4.50. Vedder also has two bond issues outstanding. Assume that the overall cost of debt is the weighted average of t..

  An analyst is evaluating a real estate investment project

An analyst is evaluating a real estate investment project using the discounted cash flow approach. The purchase price is $3 million, which is financed 15 percent by equity and 85 percent by a mortgage loan. It is expected that the property will be so..

  Accounts receivable-average collection period

In the most recent fiscal year, its sales were $18 million with $2,500,000 in after tax profits. Historically, the firm shipped out its goods with a 30 day pay period allowed, with no cash discount offered. In looking over the numbers, Beth (CEO) fel..

  What is the required return on this stock

DT Industries stock is valued at $10.40 a share. The firm pays annual dividends at an increasing rate of 2.5 percent annually. Next year's dividend will be $1.05 per share. What is the required return on this stock?

  Firm with dollar revenues is considering borrowing

A firm with dollar revenues is considering borrowing $22 million (or the equivalent) for 5 years. They are considering procuring a 5 year loan with annual installment (amortizing) payments. If they decide to borrow in pounds, which alternative is lik..

  Initial investment in fixed assets when evaluating project

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

  How do the various types of operating and financial leverage

How do the various types of operating and financial leverage impact a company? Provide examples to support your views.

  Find relevant cash flows with proposed marketing campaign

Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccessful in sharing this growt..

  What is its average payment period

Assume a firm has a cash cycle of 58 days and an operating cycle of 86 days. What is its average payment period?

  Company has been approached to bid on a contract

Your company has been approached to bid on a contract to sell 5,100 voice recognition (VR) computer keyboards a year for four years.

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