What is the most you should pay for the stock now

Assignment Help Finance Basics
Reference no: EM13300979

You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that dividends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 24.0%, what is the most you should pay for the stock now?

Reference no: EM13300979

Questions Cloud

Explain what is the total cabin pressure at which oxygen : If the partial pressure of oxygen drops below 100.0 mmHg, passengers become drowsy. If this happens, oxygen masks are released. What is the total cabin pressure at which oxygen masks are dropped
Compute the number of turns in the secondary : A transformer is to be used to provide power for a computer disk drive that needs 6.6 V (rms) instead of the 120 V (rms) from the wall outlet. Find the number of turns in the secondary
What is the most you would pay for city food common stock : They expect to see their dividend grow at a twenty percent rate for the next two years and then level out at a continuous six percent growth rate. City Food's required rate of return is twelve percent. What is the most you would pay for City Foods..
Explain enzyme that has a catalytic efficiency : You are studying an enzyme that has a catalytic efficiency of 7x10^7M-1s-1. Knowing that the Km=2.50µM and how much enzyme did you use to obtain a maximum velocity of 2520 µM/min
What is the most you should pay for the stock now : The firm yesterday paid a dividend of $7.80. You have projected that dividends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 24.0%, what is the most you should pay for the stock now?
Define what is the temperature inside the tank : A 21.40L gas cylinder has been filled with 3.186 moles of gas. You measure the pressure to be 3.260 atm . What is the temperature inside the tank
What is the value of newport printing : Newport Printing paid a $2.50 dividend over the past year. During the coming year, the dividend is expected to rise by five percent, while the required return on stocks in this risk class is eleven percent. What is the value of Newport Printing?
Compute the location of the final image : An object is located 15 cm in front of (to the left of) a converging lens with a focal length of 10 cm. To the right of the converging lens, compute the location of the final image
Explain ammonia gas has a temperature : If 26.0 g of ammonia gas has a temperature of -6.70 C and a pressure of 535mmHg , what is its volume

Reviews

Write a Review

Finance Basics Questions & Answers

  What is current price of bond m

The bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. What is current price of Bond M?

  A financial system

Difference Equation example: a financial system

  What was your real rate of return for the period

You earned 26.3 percent on your investments for a time period when the risk-free rate was 3.8 percent and the inflation rate was 3.1 percent. What was your real rate of return for the period?

  Calculate expected return on a portfolio

A stock has a beta of 1.20 and an expected return of 14 percent. A risk-free asset currently earns 3.0 percent. Calculate  the expected return on a portfolio that is equally invested in the two assets?

  Alpha products plans to finance

Alpha Products plans to finance its capital budget for next year by selling $50 million of 11 percent coupon rate bonds, with each bond having a maturity value (M) of $1,000 and a 20-year maturity.

  How much money will you need to invest

If you wanted to invest all of the money you will need for retirement right now, how much money will you need to invest?

  Lender controls used in inventory financing

Determine which of the following is not part of the lender controls used in inventory financing and find the cost of not taking the following cash discounts?

  Calculate the total and maximum amount

Kelly has AGI of $100,000 in 2006. She contributes stock in Tulip Corporation to a State University The stock price is $59000 & she acquired it as an investment two years ago at a cost of $44,000.

  Prepare journal entry to record sales

Steve Smith, owner of Steve's Bowling Alley, generated $30,000 in sales for the month of January. "Regular" customers are allowed to play on account.

  What is the standard deviation of this portfolio

Treasury bills have an expected return of 3%, the expected market return as measured by the S &P is 11% and the S&P's standard deviation is 21%.

  What is the amount of the firm disbursement float

The checks that are received are deposited immediately and the funds are generally available the following day. What is the amount of the firm's disbursement float.

  What will the year 1 operating cash flow

Depreciation is computed using MACRS over a 5-year life, and the cost of capital is 9 percent. Assume a 40 percent tax rate. What will the year 1 operating cash flow for this project 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