What is the required rate of return on stock

Assignment Help Financial Management
Reference no: EM131556100

The common stock of ABC Industries is valued at $43.06 a share. The company increases their dividend by 6.6 percent annually and expects their next dividend to be $6.4. What is the required rate of return on this stock? Note: Enter your answer in percentages rounded off to two decimal points.

Reference no: EM131556100

Questions Cloud

What is the precise calculations of the real risk free rate : What is the precise calculations of the real risk free rate?
What is the stock expected price three years from today : What is the stock's expected price 3 years from today?
What is expected stock price in seven years : ABC’s next dividend is expected to be $5.43, its required return is 22%, and its growth rate is 6%. What is ABC's expected stock price in 7 years?
Compute the mirr statistic for project : Compute the MIRR statistic for Project J if the appropriate cost of capital is 9 percent.
What is the required rate of return on stock : The common stock of ABC Industries is valued at $43.06 a share. What is the required rate of return on this stock?
What are the equivalent yields that the treasurer needs : what are the equivalent yields that the treasurer needs to know and how much are they?
What is the approximate net present value : What is the approximate net present value?
What should be the current price of the bond : What should be the current price of the bond, assuming that the required annual return on the bond is 10 percent?
What is future value : What is the Future Value at the end of the 20th semester of an annuity due with 20 semi-annual payments of $500 each,

Reviews

Write a Review

Financial Management Questions & Answers

  Based on the net present value

A project has cash flows of -$119,000, $52,800, $60,200, and $33,100 for years 0 to 3, respectively. The required rate of return is 12 percent. Based on the net present value of _____, you should _____ the project.

  About financial status of an organization

The requirement to provide financial accounting information is given by the need for outside stakeholders (primarily investors) to have reliable information about financial status of an organization?

  What was the amount of the final payment

A debt of $4000 is repaid by payments of $1500 in nine months, $2000 in 18 months, and a final payment in 27 months. what was the amount of the final payment?

  Expanding rapidly-currently needs to retain all of earnings

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from toda..

  What is best estimate of the stocks current market value

Nachman Industries just paid a dividend of D0 = $1.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What..

  What is annual rate of interest with continuous compounding

Find the present value for a payment of $10; 000 to be received in 3,5 years, if the annual interest rate is 4% that: (i) compounded monthly; (ii) compounded continuously. What is the annual rate of interest with continuous compounding is equal to 10..

  Existing shareholders

Existing shareholders:

  Affect the relative competitive positions of caterpillar

Suppose that a decade ago, the Japanese yen stood at 120 Yen/$; Today, 10 years later, the Japanese yen is trading at 100 Yen/$. Consider the case of the heavy earth-moving equipment industry, What has happened to the Japanese Yen and how does it aff..

  What is the exact real rate

Treasury bills are currently paying 6 percent and the inflation rate is 2.8 percent. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate real rate % What is the exact r..

  Calculate the gamma and theta of the position each week

Calculate the gamma and theta of the position each week. - Calculate the change in the value of the portfolio each week and check whether equation is approximately satisfied.

  How did 2011 net sales compare with 2010

How did 2011 net sales compare with 2010?- How did 2011 net earnings compare with 2010?- Summarize the trend in profitability for this firm.

  Determine effective annual return on the bond investment

Determine the effective annual return on the bond investment.

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