What price should the stock sell

Assignment Help Financial Management
Reference no: EM131517033

Vara Technologies is expected to pay a dividend of $2.00 per share one year from today. Vara's required rate of return is r1=11%. If the expected growth rate is 5%, at what price should the stock sell?

Reference no: EM131517033

Questions Cloud

Determine the total amount of his contributions : Determine the single deposit now that will provide the same retirement benefit. Determine the total amount of his contributions.
Calculate the eac for each copier : The inflation rate is expected to be 5 percent per year, and the nominal discount rate is 14 percent. Calculate the EAC for each copier.
How many shares must it sell in the total offering : how many shares must it sell in the total? (primary and? secondary) offering?
Consider european put option : Consider a European put option which has one month to expiration assume that the value of K=75, r=.05,
What price should the stock sell : Vara Technologies is expected to pay a dividend of $2.00 per share one year from today. what price should the stock sell?
What is its debt equity ratio-what is its equity multiplier : What is its Debt Equity ratio? What is its Equity Multiplier?
What will be company equity cost of capital : What will be Company B's equity cost of capital if it issues the debt?
Superior understanding of the firms business operations : Inside directors should constitute the majority of a corporate board, because insiders have superior understanding of the firm’s business operations.
Volatility of the underlying stock : Suppose you believe the volatility of the underlying stock will be 20% per year from now until the expiration date,

Reviews

Write a Review

 

Financial Management Questions & Answers

  What was your total real return on investment

You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $1,044. These bonds make annual payments and mature 13 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6..

  Compute tax liability and net tax due or refund

Dan and Jane are married and have 2 children, Andrea (18) and Frank (12). Andrea qualifies as a dependent and has no income for the year. Dan works for the post office and earns $52,000 this year. He has $6,000 withheld from his paycheck. Compute Bus..

  How does this impact the companys current cost of debt

A company issues debt at 8%. A year later, the risk free rate on government bonds has increased 100 basis points to 5% from 4%. If nothing else has changed, how does this impact the company's current cost of debt? What happens to the company's cost o..

  Using MACRS depreciation method

Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000. These tractors are expected to generate EBITDA of $250,000 for each of the next three years. Assuming that Casa Grande Farms depreciates these tract..

  Retirement fund-amount of his monthly end-of-month payments

A man plans to work for 25 years and to make deposits into a retirement fund at the amount of 100 at the end of year month. The fund earns 6% nominal, converted monthly. The fund will be used to purchase a 20- year annuity-certain in retirement. Assu..

  Taxed if company is hedger and speculator

Suppose that on October 24, 2013, a company sells one April 2014 live-cattle futures contract. It closes out its position on January 21, 2014. The futures price (per pound) is 91.20 cents when it enters into the contract, 88.30 cents when it closes o..

  What would net income have been in 2004

What would net income have been in 2004 if Hastings had used LIFO and What amount should be reported as Unearned Service Revenues in Denny's December 31, 2001 balance sheet?

  Complimentary effects may have no change in cash flow

Complimentary effects may have no change in cash flow, or else will ____ cash flow. Cannibalization effects may also have no change in cash flow, or else will _____ cash flow.

  What is the common-size statement value of inventory

A firm has sales of $1,370, net income of $162, net fixed assets of $492, and current assets of $259. The firm has $93 in inventory. What is the common-size statement value of inventory?

  What goals should always motivate the actions of a firms

what goals should always motivate the actions of a firms financial manager and why?this solution explain role of

  Compute the expected return

Compute the expected return given these three economic states, their likelihoods, and the potential returns:

  Primo portfolio out performed market over the period

As port of her analysis, Jones also takes a look at one of Primo’s global funds. In this particular portfolio, Primo is invested 75% in Dutch stocks and 25% in British stocks. The benchmark invested 50% in each—Dutch and British stocks. Calculate the..

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