What is the stock expected price in five years from now

Assignment Help Financial Management
Reference no: EM131453360

Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock is 11.50%. What is the stock's expected price in 5 years from now?

Reference no: EM131453360

Questions Cloud

Positive return-when the overall stock market declined : A stock had a positive return last year, a year when the overall stock market declined.
Explain how she would treat her losses for tax purposes : Write a letter to Emily in which you explain how she would treat her losses for tax purposes.
Assumptions underlying sales mix and cost volume profit : What are the assumptions underlying sales mix and cost volume profit that are potentially misleading?
Financially strong enough to issue conventional debt : The sale of convertible securities is a signal to the market place that the issuing company is not financially strong enough to issue conventional debt
What is the stock expected price in five years from now : What is the stock's expected price in 5 years from now?
Percentage necessary to achieve the cost reduction goal : What would be the minimum combined average cost of sales expressed as a percentage necessary to achieve the cost reduction goal?
Increase with the size of the firm roe : Suppose a firm’s managers receive bonuses that increase with the size of the firm’s ROE
Same amount of currency at spot rate : how much more would they be paying in Swiss francs to buy the U.S. currency at six month forward rate than if they bought same amount of currency at spot rate?
Actual standard deviation : Suppose that you wanted a 95% confidence interval for mean of normally distributed random variable whose actual mean is 10-whose actual standard deviation is 5.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the present value of these payments

You purchased an investment which will pay you $10,000, in real dollars, a year for the next five years. Each payment will be received at the end of the period with the first payment occurring one year from today. The nominal discount rate is 10 perc..

  What was boyds profit or loss from this contract

Boyd Company sold a futures contract (one) on Treasury bonds that specified a price of 93-00. When the position was closed out, the price of the Treasury bond futures contract was 94-20. Did interest rates increase or decrease? How do you know? What ..

  Triumph company has total assets worth 6413228 next year it

1.planning models that are more sophisticated than the percent of sales method have2.firms that achieve higher growth

  Compare and contrast the potential liability of owners of

Compare and contrast the potential liability of owners of  proprietorships, partnerships (general partners), and corporations. What is meant by Working capital? How is it calculated? Explain the determinants of working capital requirements.

  What is the percentage price change of bonds

Bond J is a 7 percent coupon bond. Bond K is a 11 percent coupon bond. Both bonds have 12 years to maturity and have a YTM of 8 percent. a. If interest rates suddenly rise by 1.6 percent, what is the percentage price change of these bonds? b. If inte..

  What is market value of stock after the rights offering

Suppose you own 50,000 shares in a firm with 2.5 million total shares outstanding. The firm announces a plan to sell an additional 1 million shares through a rights offering. The market value of the stock is $35 discount. What is the market value of ..

  How long will it take you to pay off your mortgage

how long will it take you to pay off your mortgage? How much interest will you pay over the remaining years of your mortgage now?

  About the patterns of patron demand

The owner of a restaurant that serves continental-style entrees wants to learn more about the patterns of patron demand during the Friday-to-Sunday time period. She has decided to study the demand for dessert during this period. At the 0.05 level of ..

  The weighted average cost of capital for a firm

The weighted average cost of capital for a firm with a 60% debt and 40% equity in its capital structure, an 8% cost of debt, a 15% cost of equity, and a 35% tax rate would be: a. 7.02% b. 9.12% c. 10.80% d. 11.08% e. 13.80%

  Interest is accrued but no payments are made

A $10,000 in student loans at 6% simple interest per year is paid back in one lump sum at the end of a 5 year grace period (i.e., interest is accrued but no payments are made). What is the amount of the lump sum payment at the end of year 5?

  Design a set of lending or borrowing positions

Design a set of lending/borrowing positions in the interbank money market that will generate a risk-free one-year-ahead forward rate quote stated in term of USDs per CLP. Explain why this is a risk-free quote

  Calculate the cost of derivative

Assume the Black-Schools framework. Let S be a stock such that S(0) = 10, and the dividend rate is 4% compounded continuously. Let C be a derivative that pays 100S(2)^(−1 )two years from now. In addition, the risk free rate is r = 0.11, and the volat..

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