User Account

All Pages

What is the price of the share today

Assignment Help Business Management
Reference no: EM131541864

Question1

Trentham Estate Ltd expects to grow at a rate of 22 percent for the next 5 years and then settle to a constant-growth rate of 6 percent. The company's most recent dividend was $2.35. The required rate of return is 15 percent.

Required

a. Find the present value of the dividends during the rapid growth period.

b. What is the price of the share at the end of year 5?

c. What is the price of the share today?

d. Briefly describe the factors that financial managers should consider when setting the dividend policies for their companies.

Question2

New South Wales Treasury has issued $1,000 face value, 25-year bonds that pay a coupon of 9.875 percent semi-annually. The current market rate for similar securities is 11 percent.

Required

a. What is the bond's current market value?

b. What will be the bond's price if rates in the market (i) decrease to 9 percent ; (ii) increase to 12 percent?

c. Discuss how the interest rate changes affect the price of premium bonds and discount bonds?

d. Suppose the bonds were to mature in 12 years. How would the interest rate changes in part b affect the bond prices?

Reference no: EM131541864

Questions Cloud

The features and benefits of a product or service : Societal marketing is on the rise, as more companies consider the value proposition of their image beyond just the features & benefits of a product or service.
What you believe are the two most important concepts : Reflecting on the past ten (10) weeks, specify what you believe are the two (2) most important concepts you have learned in this course.
Discuss the patterns thet mobility xe users have : Do some Internet research on the security implications of HIPPArequirements for hospital networks. Discuss the major types ofsecurity mechanisms that must be.
Differences between qualitative and quantitative questions : Contrast at least two (2) differences between qualitative and quantitative research questions
What is the price of the share today : What is the price of the share at the end of year 5? What is the price of the share today?
Explain the general anonymity of users on the internet : Second, the fact that international borders make it difficult to determine jurisdiction on the Internet, it is sometimes impossible to backtrack all the way.
Identify two to three common themes in the literature : Write a three to four (3-4) page paper in which you: Identify two to three (2-3) common themes in the literature
Components of the cash conversion cycle : In your own words please explain the three components of the cash conversion cycle.
The philosophical point in his or her presentation : Did the student connect the abstract philosophical point to some events in the contemporary world in which the student lives?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd