What will the price be in five years and in fourteen years

Assignment Help Financial Management
Reference no: EM131886260

Gilmore, Inc., just paid a dividend of $2.45 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock.

What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price            $

What will the price be in five years and in fourteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Price

Five years $

Fourteen years $

Reference no: EM131886260

Questions Cloud

Is walt disney a related diversifier : Is Walt Disney Co. a related diversifier? Explain why or why not?
What is the target share price seven years from now : What is the target share price seven years from now?
Independent and mutually exclusive projects : What is the difference between independent and mutually exclusive projects? Would the NPVs change if the cost of capital changed?
Values of mean return and variance for the stock fund : Calculate the values of mean return and variance for the stock fund.
What will the price be in five years and in fourteen years : What will the price be in five years and in fourteen years?
What is each project equivalent annual annuity : What is each project’s initial NPV without replication? What is each project’s equivalent annual annuity?
Should wade accept an offer paying : If Wade’s boss requires an 8% interest rate, should Wade accept the offer? Should Wade accept an offer paying $11,000 per year for 6 years?
What is the fixed amount you have to save each month : If you can receive 5% interest annually on a savings account, what is the fixed amount you have to save each month?
What are normal and non normal cash flows : What are normal and non normal cash flows? What is Project P’s NPV? What is its IRR? What is its MIRR?

Reviews

Write a Review

Financial Management Questions & Answers

  Disallowed business expenses

Paul operates a restaurant in Cleveland. He travels to Columbus to investigate acquiring a business. He incurs expenses as follows: $1,500 for travel, $2,000 for legal advice, and $3,500 for a market analysis. Assuming all the events occurred in 2016..

  How much should monthly deposits be for his retirement plan

Denzel wishes to save money to provide for his retirement. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 10% compounded monthly. The fund will continue to earn 10% compounded mo..

  In order to accurately assess the capital structure of firm

In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation's balance sheet as of today, January 1, 2004, is as follows:

  Determine terminal distribution of the asset price

Determine the terminal distribution of the asset price. What do you expect to spend to buy the underlier and what is the present value?

  Two years remaining to maturity-yield to maturity

Assume a bond with a $1,000 par value and an 11 percent coupon rate, two years remaining to maturity, and a 10 percent yield to maturity. The duration of this bond is ____ years

  Convert nominal dollars to constant dollars

What three pieces of information are needed to convert nominal dollars to constant dollars?

  What is the present value of these cash flows

Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent?

  Risk aversion arises only among investors who

The sources of total return on a coupon-paying bond are. Risk aversion arises only among investors who

  Calculate dividend yield and expected capital gains yield

Calculate the dividend yield and the expected capital gains yield for year 1.

  What is the average geometric return on this portfolio

A portfolio had an original value of $7,400 seven years ago. The current value of the portfolio is $11,898. What is the average geometric return on this portfolio?

  How many shares are issued and outstanding

How many shares are issued? Number of shares issued. How many shares are outstanding?

  What is the difference between this bonds YTM and its YTC

McCue Inc.'s bonds currently sell for $1,025. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and r..

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