What is the most you would pay for the stock

Assignment Help Finance Basics

Reference no: EM131961195

Question: You are contemplating the purchase of a stock you will hold for 2 years. You will receive $0.85 per year in dividends, and then you expect to sell it for $21. If the required return is 12%, what is the most you would pay for the stock? The most you would pay for the stock is $. (Round to the nearest cent.)

Reference no: EM131961195

Questions Cloud

Discuss items that can go wrong with a communication system : Discuss item that can go wrong with a communication system. Discuss elements of communication system and what ultimate impact might due to some sort of failure.

What is the companys total market value of debt : Jiminy's Cricket Farm issued a 30-year, 6 percent semi-annual bond 7 years ago. The bond currently sells for 91 percent of its face value.

What is the importance of fairness in a manager : Conversation styles differ between men and women. How does this affect organizational communication? Why is it important to be mindful of these differences?

How much will be available to jennifer on her birthday : How much will be available to Jennifer on her 18th birthday? Assume the relevant interest rate is 7.1% per year. Enter your answer to the nearest cent.

What is the most you would pay for the stock : You are contemplating the purchase of a stock you will hold for 2 years. You will receive $0.85 per year in dividends, and then you expect to sell.

How much will she take home under each method : If Jill's company earns $230,000 all of which she will pay to herself, how much will she take home under each method?

Describe an axial skeleton injury in a sport of choosing : The axial skeleton includes the skull, spine, ribs, and sternum, the joints between those segments, and the muscles that control those segments.

Evaluate whether the industrial relations system : Evaluate whether the industrial relations system is unbalanced against business. Consider both the economic domain and the socio-political

Find the expected dividend for given time period : Find the expected dividend for each of the next 3 years; that is, calculate D1, D2 and D3. Note that D0 = $2.00. Round your answer to the nearest cent.

User Account

All Pages