What is the required return for a stock

Assignment Help Financial Management
Reference no: EM13726321

What is the required return for a stock that has a 5.7% constant-growth rate, a price of $21.25, an expected dividend of $1.70, and a P/E ratio of 10?

13.70% or 5.70% or 10% or 5.90%

Reference no: EM13726321

Questions Cloud

What is approximate real rate of return on this investment : An investment today of $26,000 promises to return $10,000 annually for the next 3 years. What is the approximate real rate of return on this investment if inflation averages 5% annually during the period?
What would be the weight used for equity in the computation : Team Sports has 6 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 200 thousand bonds ($1,000 par). If the common shares are selling for $24.50 per share, the preferred share are selling for $20 per sha..
Assignment on sustainability and the green supply chain : Calculate total landed cost per unit and per month for he three potential suppliers. Who is the cheapest? Who is the most expensive?
What is your portfolio return : Portfolio Return Year-to-date, Company X had earned a -3 percent return. During the same time period, Company Y earned 12 percent and Company Z earned 7 percent. If you have a portfolio made up of 50 percent Company X, 30 percent Company Y, and 20 pe..
What is the required return for a stock : What is the required return for a stock that has a 5.7% constant-growth rate, a price of $21.25, an expected dividend of $1.70, and a P/E ratio of 10?
How writers move from actively listening at the sidelines : how writers move from actively listening at the sidelines of an academic conversation to engaging in that dialogue as participants.
What functions do retailers perform : what functions do retailers perform, discuss some of the major types of wholesalers. Provide an example of one of these wholesalers' types from the marketplace
Tax component cost of debt : HydroTech Corp stock was $50 per share a year ago when it was purchased. Since then, it paid a $4 per share dividend. The stock price is currently $45. If you owned 500 shares of HydroTech, what was your percent return? TAB Inc. has a $1,000 (face va..
Expect a constant-growth rate : A company with a return on equity of 15.7% and a plowback ratio of 70% would expect a constant-growth rate of:

Reviews

Write a Review

Financial Management Questions & Answers

  What nominal annual interest rate will you be earning

You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of the 24th month, you will have $13,200 in your account. If the bank compounds interest monthly, what nominal annual interest rate will you be earni..

  Cumulative nonvoting preferred stock

what if in L receives $220 worth of P non-voting preferred stock (rather than P bonds) in exchange for his T bonds?

  Analysis of investment dear sir madamcan you please provide

dear sir madam ltbrgt ltbrgtcan you please provide me the attached solution plagiarism free. looking forward to hear

  Digital organics has the opportunity to invest

Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..

  Explain the degree to which the existing benchmarks align

Explain the degree to which the existing benchmarks align with existing organisational goals. Propose improvements which would better align benchmarks as needed.

  1 puckett products is planning for 5 million in capital

1. puckett products is planning for 5 million in capital expenditures next year. pucketts target capital structure

  Find the outstanding balance at the end of the first year

A loan of 100,000 has payments at the end of each month for 12 years. For the first 6 years the payments are Z each month, and for the final 6 years the payments are 2Z each month. Interest is at a nominal annual rate of 12% compounded monthly. Find ..

  Calculate the return the stock had at time of margin call

An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin. In one year the investor gets a margin call.

  Calculate the non-operating terminal year cash flow

Calculate the net operating cash flows in years 1, 2, and 3 and calculate the non-operating terminal year cash flow.

  Net present value decision technique may not be pertinent

The Net Present Value decision technique may not be the only pertinent unit of measure if the firm is facing

  You have been hired in the finance department at a large

you have been hired in the finance department at a large metropolitan for-profit hospital. your duties are very

  Assume a required rate of return on this bond

What is the value of a bond that has a par value of $1000, a coupon rate of 17.24% (paid annually), and that matures in 8 years. Assume a required rate of return on this bond is 13.53%.

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