What is the value of the stock today

Reference no: EM13282581

Simpkins Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 20% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 7% per year. If the required return on the stock is 18%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate computations.

Reference no: EM13282581

Questions Cloud

Explain makes a gel when dissovled in boiling water : You are given 100g agarose (which makes a gel when dissovled in boiling water) and 100 ml buffer. Show how you would prepare 50 ml of a 1.2% agarose gel. weight and volume do not add up

What is the mass of the child : A child on roller skates undergoes an acceleration of 0.8 m/s2 due to a horizontal net force of 20 N. What is the mass of the child

What happened during george w bush : what happened during George w bush like the iraqi incident the nuclear issue with Iran and internal economics another 4 pages with conclusion and references delivery Wednesday can that be don. what happened with bush like itaqi invasion nu..

What is the magnitude of the third force : Three forces act on an object. A 2 N force acts due east and a 3 N force acts due north. what is the magnitude of the third force

What is the value of the stock today : What is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate computations.

Calculate the necessary capacitance per phase : A 10kW, 230V, 50 Hz, three-phase induction motor has full-loadefficiency of 86%, and power factor of 88%. It is supplied by a three-core cable 100mlong, having conductors of cross sectional area 16 mm^2 andresistivity 17.2nΩ m.

Explain the structures of any important intermediates : Show how you would synthesize the product from the reactant. Show reagents, conditions, and the structures of any important intermediates. Any organic reagent may be used.

Calculate the combined mass of pluto and charon : Using Newton's Version of Kepler's Third Law II Part A Pluto's moon Charon orbits Pluto every 6.4 days with a semimajor axis of 19,700 kilometers. Calculate the combined mass of Pluto and Charon

Find the voltage vab from the top to the bottom surface : Two infinite sheets of charge lie parallel to each other, separatedby a distance d. The upper and lower sheets have surfacecharge densities ρsa and ρsb[C/m2], respectively. find the voltage Vab from the top to the bottom surface

User Account

All Pages