What is the value of a stock with an expected dividend

Assignment Help Financial Management
Reference no: EM13885069

If expected dividends grow at 6% and the appropriate discount rate is 10%, what is the value of a stock with an expected dividend of $2.75? (Round your answer to 2 decimal places.)

$68.75 $103.12 $34.38 $69.75

Reference no: EM13885069

Questions Cloud

Fluctuations in the value of their investments : Rational investors ________ fluctuations in the value of their investments.
Return on average compared to treasury bills : Historically, stocks have delivered a ________ return on average compared to Treasury bills but have experienced ________ fluctuations in values.
Dividends-what is the current share price : Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent, and the company just paid a di..
What is the present value of an investment : What is the present value (PV) of an investment?
What is the value of a stock with an expected dividend : If expected dividends grow at 6% and the appropriate discount rate is 10%, what is the value of a stock with an expected dividend of $2.75?
Weighted-average process costing to account for production : Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. Instead of being 30% complete with respect to ..
How much does she need to place in a saving account today : Camila plans to go for vacation to Australia in 11 years from now. She estimates that she will need $26,222 for the trip. How much does she need to place in a saving account today that earns 5.12 percent per year (compounded quarterly) to accumulate ..
Hamptons home of a famed socialite hits the market : “Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan’s onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of..
What is the market value of the bond : A fourteen-year bond, with par value equals $1,000, pays 10% annually. If similar bonds are currently yielding 9% annually, what is the market value of the bond? Use semi-annual analysis.

Reviews

Write a Review

Financial Management Questions & Answers

  Currency futures definition

Currency Futures Definition. What are currency futures? How do they differ from currency forwards?

  Minimum monthly payment of the outstanding balance

How long will it take Kate to pay for her furniture set if she chooses to pay only the minimum monthly payment of 2% of the outstanding balance? Her furniture set cost $3,750 financed at 19 3/4% annual interest.

  Concept of cost of capital mace manufacturing

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new facilities in different regions, North and South.

  Big player in personal fitness gear

FitBit, a big player in personal fitness gear, is evaluating a new technology to provide not only heartrate and blood pressure feedback but extensive feedback on every bite of food eaten and lifestyle choices made. The project is expected to provide ..

  The cost of debt and equity

Calculate a firm’s WACC given that the firm has $600,000 of debt and $1,400,000 of equity. The cost of debt and equity is 10% and 15%, respectively, and the firm pays no taxes.

  You have recently won the unisa log tossing competition the

you have recently won the unisa log tossing competition. the prize of 200 is supposed to be used to buy a 50-year

  The yield curve on eurodollars is sharply upward sloping

Will premiums on interest rate floors on three month LIBOR be high or low? Explain. Will premiums on interest rate caps on three month LIBOR be high or low? Explain.

  Negative position implies receivables exceed payables

Kantorovich Company normally takes 29 days to pay for its average daily credit purchases of $2,400. Its average daily sales are $3,400, and it collects accounts in 24 days. What is its net credit position? Note that a negative position implies receiv..

  Internal rate of return

Project A has an internal rate of return of 15 percent. Project B has na IRR of 14 percent. Both projects have a required rate of 12 percent. Which of the following statements is most correct?

  Estimate your insurance needs using the DINK method

You and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with an $80,000 mortgage, and you owe $15,000 on car loans, $5,000 on personal debts, and $4,000 on credit card loans...

  Dividends are expected to grow at a constant rate

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 11 percent on the company's stock. What ..

  Describe how application of principles of law to key facts

You must describe how application of the principles of law to the key facts supports your determination of the issues. You need to show the reasoning behind your decision. Oil tankers used by the Atlantic Richfield Company (ARCO) to bring oil into Pu..

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