What is this stock worth to you per share today

Assignment Help Financial Management
Reference no: EM13809518

XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%.

(a) What is this stock worth to you per share today?

(b) What is the expected stock price next year?

(c) What is the expected stock price 20 years from today?

Reference no: EM13809518

Questions Cloud

Write an essay about the causes of happiness : Write an essay about The causes of happiness.
Semi-annual coupon bond with coupon rate : Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holdi..
Constant rate of growth dividend policy : ABC Corp. is going to pay an annual dividend of $4.23 a share on its common stock next year. This year, the company paid a dividend of $4.50 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common..
Write research paper on who is the resbonseible of obisety : Write a research paper about Who is the resbonseible of obisety.
What is this stock worth to you per share today : XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%. What is th..
What is the total return on this investment : One year ago, Neal purchased 3,600 shares of Franklin stock for $101,124. Today, he sold those shares for $26.60 a share. What is the total return on this investment if the dividend yield is 1.7 percent?
Company needs to decide between two machines : Company needs to decide between two machines. Which machine would you recommend?
Patton – fuller community hospital : PATTON - FULLER COMMUNITY HOSPITAL
Special revenue generating project : Sales revenue $250,000 in the first year and will increase by 20% per year for the next 4 years. In year 6 the revenue will decrease by 15% a year through year 8. There is no expected cash flow after 8 years as this venture has a constrained timeline..

Reviews

Write a Review

Financial Management Questions & Answers

  Free agent market of major league baseball

During the 2014 free agent market of major league baseball, Nick Mar kakis of Baltimore Orioles signed a $44 million contract providing $11 million a year for 4 years with Atlanta Braves. Melky Cabrera of Toronto Blue Jays signed a $42 million contra..

  Explain the accounting information for financial management

Write a 700- to 1,000-word paper identifying the specific cost accounting system an organization utilizes and how it uses the accounting information for financial management. Your paper must include the following

  Why is the quantity factor for tray costing

Why is the quantity factor for tray costing >1.0 for >20 trays? Trays are expensive no matter how many you buy. Custom trays cost more when you only order a few of them

  Size-up hcm using historical ratio analysis

Value the business from the potential buyer's (Great Wall) viewpoint, considering the changes that it will make, explaining fully.

  What is the after tax cash flow from the sale

Consider an asset that costs $465,000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $120,000. If the relevant tax rate is 35 p..

  What is the profit-loss from these transactions

An investor has engaged in the following transactions on the futures market. What is the profit/loss from these transactions? What is the overall profit/loss?

  Purchase asset portfolio that exactly matches liabilities

A company must pay liabilities of $19000 and $11000 at the end of years 1 and 2, respectively. The only investments available to the company are 1 and 2 year zero coupon bonds with yields 6% and 7%, respectively. Calculate the cost to the company tod..

  Prepare and submit a consultancy report

Prepare and submit a consultancy report to the management of Anthony's Orchard, the company studied throughout this module. The company is considering expanding its product line to include apple juice.

  Values for a single cash flow

Find the following values for a single cash flow:

  Decision affect the other elements of working capital

What factors may lead an organisation to change the level of inventories that it holds? How could such a decision affect the other elements of working capital?

  Create different models in different areas

Regarding the auto industry, do you see vehicles being standard across the globe so manufacturers don't need to create different models in different areas? Chances are that in 20 years driverless cars will be common if not prevalent so this industry ..

  Explain the meaning of surplus units and deficit units

Surplus and Deficit Units Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a deficit unit in your relations..

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