What should the price of the stock be

Assignment Help Finance Basics

Reference no: EM131965069

Question: The current price of a stock is $75.51. If dividends are expected to be $1.20 per share for the next five years, and the required rate of return is 6%, then what should the price of the stock be in 5 years when you plan to sell it? Fully explain which equation from the text you would use to solve this problem and explain the calculations you did to solve the problem.

Reference no: EM131965069

Questions Cloud

What is the weighted average cost of capital for firm : The current stock price for a company is $47 per share, and there are 3 million shares outstanding. The beta for this firms stock is 0.8.

What is the dividend yield of delta company : The current stock price of Delta Company is $19.25. At the end of the first year the stock is expected to pay a dividend of $1.45 per share.

Find the cost of preference share and cost of debt : The current share price of XX company is $8 and last year dividend was $0.20. Preferre shares were issued few years back which pays a dividend of $0.33.

Write an application that stores five different department : Write an application that stores at least five different department and supervisor names in a two-dimensional array. Allow the user to enter a department name.

What should the price of the stock be : The current price of a stock is $75.51. If dividends are expected to be $1.20 per share for the next five years, and the required rate of return is 6%.

How important do you think it is for management : How important do you think it is for management to have open communication with their staff?

What should be the forward price : Current spot bond price is $950 and it will mature in one year. Zero rates are 9.5% and 10% for 6 months and 1year respectively.

Virtual staffing of corporate operations : What are the pros AND cons of using the Internet for the "virtual staffing" of corporate operations? Explain both.

Describe role of government in us for developing techologies : Describe "MANAGING MARKETS IN EMERGING TECHNOLOGIES".Describe "Role of Government in US for Developing Emerging Techologies".

User Account

All Pages