What is the value of the stock

Assignment Help Finance Basics
Reference no: EM132144533

1) i) A stock will pay constant dividends of $9 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 17%. What is the value of the stock? Round to the penny.

ii) A stock just paid a dividend of $4, and dividends will increase by 7% every year. Its required rate of return is 12%. What is the value of the stock? Round to the penny.

iii) A stock will pay a dividend of $7 in one year and increase 3% every year after that. Its required rate of return is 13%. What is the value of the stock? Round to the penny.

iv) Which of the following is NOT a source of cash to a stockholder?

a) Value of the stock when sold back to the company

b) Net working capital per share

c)Value of the stock when sold to another investor

d) Dividends

Reference no: EM132144533

Questions Cloud

What is the value today of single payment : What is the value today of single payment of $125,368.00 , 17.0 years from today if the value is discounted at a rate of 4.75%?
What is the addition to retained earnings for the period : The firm paid $95,000 in cash dividends. What is the addition to retained earnings for the period?
What is the firm degree of operating leverage : What is the firm's degree of operating leverage (defined as the ratio of the percent change in EBIT to the percent change in sales) in going from a recession
Review the fishbein model material before completing : Review the Fishbein model material before completing - Choose two competitors for one of your retailers and build a Fishbein model in Excel
What is the value of the stock : A stock will pay constant dividends of $9 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 17%.
What is the net present value and internal rate of return : Artistic's tax rate is 34%, and its required rate of return is 15 percent. Should Artistic purchase the machine? What is the net present value
What are the annual supplemental cash flows : The firm's tax rate is 34%. What are the annual supplemental cash flows?
Traditional payback period and discounted payback period : The firm's required rate of return is 8%. What is the traditional payback period and discounted payback period?
Net present value and and the internal rate of return : Their required rate of return is 14%. What is the net present value and and the internal rate of return?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why did you choose to analyze the company

Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the NASDAQ to analyze. Please note that it is usually easier to find.

  What skill sets or job characteristics lead to variation

What skill sets or job characteristics lead to the variation in salaries? Which of these positions generally require previous work experience?

  Compare the calculated financial ratios against the industry

Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company

  How does a leveraged lease differ from a nonleveraged lease

How does a leveraged lease differ from a nonleveraged financial lease? What type of firm or organization is most likely to take advantage of the leveraged lease financing option? What type of individual or financial institution is most likely to act ..

  Yield curve strategies

Yield Curve Strategies

  What activities are involved in managing the company cash

What activities are involved in managing the company’s cash flows?

  What is the firm effective cost of borrowing

Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

  What is marko willing to pay today to buy abc co

After that time, they feel the business will be worthless. Marko has determined that a rate of return of 13 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

  Type of audit opinion

Which of the following is not a type of audit opinion?

  Explain why hr decisions are heavily regulated

Based on your analysis of current social forces, what new laws or regulations do you think will be passed or issued in the next few years?

  Do you agree with king belief that you need to create tenssi

Do you agree with King's belief that you need to create tension in order to have reform come about? Why or why not? Do you agree with King's distinction between just and unjust laws? Why or why not?

  Advise moyo on his legal position

Moyo pays for the cost of the tv set and discovers after a few days that Elizabeth lied. Advise him on his legal position Hire Purchase System: it's Advantages and Disadvantages!

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