What long run growth rate in dividends is consistent

Assignment Help Financial Management
Reference no: EM131329190

Investors believe that a certain stock will pay a $4 dividend next year. The market price of the stock is $66.67, and investors expect a 12 percent return on the stock.

What long-run growth rate in dividends is consistent with the current price of the stock?

Reference no: EM131329190

Questions Cloud

How they reflect effective writing choices : Demonstrate understanding of the outcomes (define your understanding of the outcome in your own words) through paraphrase and quotation
What is non-verbal communication give examples : What did you agree with in this article? What did you not agree with this article? Would you recommend this book to others? Why or why not? What is non-verbal communication? Give examples.
What will price be immediately after next dividend payment : If the next dividend is due in one year and investors require an 8 percent return on the stock, what is its current market price? What will the price be immediately after the next dividend payment?
How much will it sell for a year from today : If the market's required return on PS stock is 12 percent, what does the stock sell for today? How much will it sell for a year from today after the stockholders receive their dividend?
What long run growth rate in dividends is consistent : Investors believe that a certain stock will pay a $4 dividend next year.- What long-run growth rate in dividends is consistent with the current price of the stock?
Describe the trust model of pgp : Describe the trust model of PGP and how the public-key management works in practice
If provides an annual expected return : After contemplating the risk of Petscan stock, Gail is willing to hold the stock only if it provides an annual expected return of at least 13 percent. Should she buy Petscan shares or not?
Different between nfpa and osha training : What is the different between NFPA and OSHA training - Hazardous materials technician.
What should the stock sell for today : Carbohydrates Anonymous (CA) operates a chain of weight-loss centers for carb lovers. - If the market requires an 11 percent return on CA stock, what should the stock sell for today?

Reviews

Write a Review

Financial Management Questions & Answers

  Can you think of alternative explanations for given finding

Suppose you find evidence that workers who are high school dropouts are more likely to retire at age 62 than are college-educated workers.- Can you think of alternative explanations for this finding?

  Open-end mutual fund and a closed-end fund

What is the difference between an open-end mutual fund and a closed-end fund? What is the difference between an open-end mutual fund and a unit investment trust? (17-3)

  Concerning principal and interest on fannie mae-sponsored

Concerning Principal and Interest on Fannie Mae-sponsored MBS:

  Find the present value of this perpetuity

A perpetuity will make payments of $50,000 every third year, with the first payment occurring three years from now. The effective annual interest rate is 8%. Find the present value of this perpetuity.

  Activities in regard to derwent shares

Explain to John, Sid and Kylie the possible results in legal terms of their activities in regard to Derwent's shares.

  Considering acquiring a new computer

Your company is facing earnings pressure and is considering acquiring a new computer system that will initially cost $1 million and will save $300,000 per year in inventory and receivables management costs.  The system is will last for five years.

  What is the maximum return

A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas Project B yields a return of 15% on the investment of y dollars. How much should the financier invest in each project ..

  Depreciations each year using straight line depreciation

A wood products company has decided to purchase new logging equipment for $100,000. The new equipment will be kept for 10 years before being sold. Its estimated SV at the time is expected to be $10,000. What is the depreciations each year using strai..

  How much does development office need to ask for up front

Katherine wishes to endow a professorship in honor of her beloved mycology professor. The University's development office has prepared a proposal for her review, to wit, "The Agnew Chair in Fungus Studies," which will contribute $1 million per year, ..

  What is its new expected return on your portfolio

Company:AAA- Return6.50%, Shares200, Price54 Company:Axe- Retrun7.8% Shares100 Price120 Company:BR Co.- Return11% Shares400, Price30 Company: Basil- Return12.7%, Shares500, Price450 Company: Temple- Return20.5%, Shares300, Price100 If the risk premiu..

  Price of the shorter-term bond when interest rates change

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year. What will the value of the Bond S be if the going interest rate is 9%? Round you..

  Investment in a foreign currency denominated financial asset

"For an investment in a foreign-currency-denominated financial asset, part of the return comes from the asset itself and part from the foreign currency."- Do you agree or disagree with given statement?

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