What price was paid for the stock

Assignment Help Financial Management
Reference no: EM13879653

A common stock is held for five years, during which time it receives an annual dividend of $5. the stock was sold for $110 and generates an average annual return of 14%. what price was paid for the stock?

Reference no: EM13879653

Questions Cloud

Clorox company is a leading manufacturer and marketer : The Clorox Company is a leading manufacturer and marketer of consumer and institutional products with approximately 8,100 employees worldwide and fiscal year 2011 net sales of $5.2 billion.
Analyze the current health care delivery structure in state : Analyze the current health care delivery structure in your state
Investment in subsidiary under the cost method : On January 1, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for $316,000. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Any rem..
Last payment at an annual effective rate of interest : Consider an annuity-due with 12 annual payments. The first payment is 4000 at time 0 and each subsequent payment decreases by 5%. Find the AV of this annuity 2 years after the last payment at an annual effective rate of interest i=6%.
What price was paid for the stock : A common stock is held for five years, during which time it receives an annual dividend of $5. the stock was sold for $110 and generates an average annual return of 14%. what price was paid for the stock?
Considering the purchase of new equipment to replace : Rozetta Manufacturing Company (RMC) is considering the purchase of a new equipment to replace the old one. The old equipment was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight-line basis to a zero salvage value ..
Consider four different stocks : Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $4.40 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..
When was the last scheduled meeting of the fomc? : When was the last scheduled meeting of the FOMC?

Reviews

Write a Review

Financial Management Questions & Answers

  Process of preparing annual budget

Arter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. How much of the raw material should the company purchase during the year? Assume that company plans to s..

  What is the repo rate

The European Cental Bank engages in a term repo operation with Banking4EU. Specifically, the central bank buys 150mn Euros of bonds which Banking4EU agrees to repurchase for $151mn in three months' time. What is the repo rate?

  Capital asset pricing model holds

Stock A's beta is 1.4 and Stock B's beta is 1.5. If we assume that the Capital Asset Pricing Model holds:

  1security brokers inc specializes in underwriting new

1.security brokers inc. specializes in underwriting new issues by small firms. on a recent offering of beedles inc. the

  Differences between cash flow and accounting income

Discuss differences between cash flow and accounting income and why it is important to use cash flow in making capital budgeting decisions. How do companies generate ideas for capital projects? Give some examples of capital projects that companies in..

  Maintain without resorting to additional equity issues

An all-equity-financed firm plans to grow at an annual rate of at least 27%. Its return on equity is 42%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues?

  Navigation systems inc now has total worldwide revenues of

navigation systems inc. now has total worldwide revenues of over 500 million forecast for this coming year. you have

  Considering the replacement of its old

Coiner Clothes Inc. is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: (a) Machine 190-3, which has a cost of $190,000, a 3-year expected life, and after-tax cash flows (labor savings and depr..

  Regulated investment company by internal revenue service

An investment company will be treated as a "regulated Investment Company" by the Internal Revenue Service provided that it: I. invests almost all of its assets in bonds, stocks, and other securities. II. Invests solely in U.S. securities. III. Does n..

  How are the operating and cash cycles of the firm different

How are the operating and cash cycles of the firm different? Why are they important? What is the deference between management accounting and information accounting?

  The economic order quantity model

Company sells 2,391 chairs a year at an average price per chair of $170. The carrying cost per unit is $30.15. The company orders 499 chairs at a time and has a fixed order cost of $92 per order. The chairs are sold out before they are restocked. How..

  Calculate the minimum variance and optimal portfolio

Create a model that will automatically calculate the minimum variance and optimal portfolio as well as be able to draw the efficient frontier for a 3 risky asset portfolio.

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