What must be the discount rate calculate your answer

Assignment Help Finance Basics
Reference no: EM131139028

1. A company paid $1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4% per year. If the discount rate for the stock is 12% at what price, will the stock sell? What is the expected stock price 3 years from now? If you buy the stock and plan to hold it for 3 years what payment will you receive. I need answer and calculations.

2. Stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15% and the company reinvests 40 % of earnings in the firm. What must be the discount rate? Calculations and answer 

Reference no: EM131139028

Questions Cloud

The mound view motel opened for business on may 1 : The Mound View Motel opened for business on May 1, 2010. Its trial balance before adjustment on May 31 is as follows.
Values be affected under each alternative system : A parliamentary system, would be superior to separation of powers in achieving democratic accountability and responsiveness. But what other political values would you want to consider before adopting as momentous a constitutional change as proposed h..
Using the path-goal leadership model : As a leader, using the path-goal leadership model, which of the four leadership styles would you use to achieve both optimal levels of performance and job satisfaction with your subordinates? Explain your choice! Please make sure your response of min..
What is the greatest height above the ground : A rock is thrown upward from the edge of a cliff. The rock follows the equation below. What is the greatest height above the ground that this rock will go
What must be the discount rate calculate your answer : 1. A company paid $1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4% per year. If the discount rate for the stock is 12% at what price, will the stock sell? What is the expected stock price 3 years from now? If ..
Behavior-based control system-achieves incorrect conduct : Identify a case in which a company uses an BEHAVIOR-BASED control system and achieves incorrect conduct from its managers and correct conduct from its employees, as well as good consequences for the managers and bad consequences for the employees.
Complete journals entry for media and internet : Type of media observed/watched and why you chose this particular media ‘channel' - Write one paragraph on the history of the medium.
Ken ham started his own consulting firm : The office furniture has a 5-year life with no salvage value. It is being depreciated at $170 per month for 60 months.
If hotel hosts pool with a dangerous drain cover : If a hotel hosts a pool with a dangerous drain cover, and someone dies due to the drain cover, what sort of liability might that hotel have? Ignore criminal issues related to the new law passed, and focus on civil liability under torts and negligence..

Reviews

Write a Review

Finance Basics Questions & Answers

  Imagine that you are a financial manager researching

imagine that you are a financial manager researching investments for your client that align with its investment goals.

  How long has it been since job growth was this weak

Nearly half a million people dropped out of the workforce last month, dragging down the share of Americans participating in the labor force by 0.2 percentage

  Realistic model of the evaluation and control process

1. A realistic model of the evaluation and control process? (page 330). 2. What are some examples of behavior controls? Output controls? Input controls?

  Xbrl group graded assignment

The CFO is expecting that soon Ramsey will be required to file interactive financial statements with the SEC.  The CFO wants your team to practice XBRL tagging to learn more about it, and to test a product called SmartXbrl.  You are going to do th..

  Corporate tax shield on the dividends paid

Preferred Stock Preferred stock doesn't offer a corporate tax shield on the dividends paid. Why do we still observe some firms issuing preferred stock?

  Explore the capital budgeting techniques covered in the

explore the capital budgeting techniques covered in the unit npv pi irr and payback. compare and contrast each of the

  Compute the standard deviation for asset allocation

Estimate the standard deviation of Bank A's asset allocation proportions relative to the national benchmark.

  Calculation of firms growth rate and capital gains yield at

calculation of firms growth rate and capital gains yield at given dividend options1.nbspnbsp investors receive a total

  Suppose that you have been contracted by a jewelry store to

1. what are some sources of risk in a systems analysis and design project and how does a project manager cope with risk

  The policy limits and a legal defense

In addition to the policy limits and a legal defense, the PAP provides for certain supplementary payments. Briefly describe the supplementary payments that can be paid under the liability section of the PAP.

  How you intend to ensure the organizations vision mission

write a proposal of no more than 750 words outlining the research approach you will use for your strategic plan due in

  Assume that the managers of fort winston hospital are

question from gapenskis fundamentals of health care finance.assume that the managers of fort winston hospital are

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