What would the price be if the stock has a beta

Assignment Help Financial Management
Reference no: EM131358365

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6, $12, $17, and $3.25. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on the stock is 11 percent, what is the current share price? What would the price be if the stock has a beta of 2; the risk-free rate is 3%; and the market risk premium is 4%?

Reference no: EM131358365

Questions Cloud

Derive an expression for the moment of inertia per unit area : Derive an expression for the failure moment per unit area in terms of the ratio r = h/b, for a constant material strength Fx.
Legal forms of organization is taxed : The income of which of the following legal forms of organization is taxed more than once by the time that income is ultimately distributed to its owner(s), partners, member(s), or stockholder(s)? A feature that gives the issuer the opportunity to rep..
Assign more responsibility to individuals : Bernie Madoff Case. "Do you think that a scandal such as this is the result mostly of unethical individuals, or are there organizational issues that allowed, encouraged, or were responsible for the harms?" Do you assign more responsibility to indi..
Compute the reduced stiffness and compliance matrices : Compute the reduced stiffness [Q] and compliance [S] matrices, and the intralaminar shear stiffness [Q∗ ] and compliance [S ∗ ] matrices for a lamina with E1 = 35 GP a, E2 = 3.5 GP a, ν12 = 0.3, G12 = 1.75 GP a, G23 = 0.35 GP a.
What would the price be if the stock has a beta : Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6, $12, $17, and $3.25. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. If the required return on the st..
Compute the reduced stiffness and compliance matrices : Compute the reduced stiffness [Q] and compliance [S] matrices, and the intralaminar shear stiffness [Q∗ ] and compliance [S ∗ ] matrices for a lamina.
Thomas-kilmann conflict mode instrument : You need an indepth paragraph based on Thomas-Kilmann Conflict Mode Instrument (TKI)5 Write about them based on a chart.
Determine if restrictions on elastic constants are satisfied : The following data has been obtained experimentally for a composite based on an unidirectional carbon-epoxy prepreg (MR50 carbon fiber at 63% by volume in LTM25 epoxy). Determine if the restrictions on elastic constants are satisfied.
Provide a preliminary thesis statement : Explain the reason for selecting topic one (1), identify the audience, and provide a preliminary thesis statement - Explain the reason for selecting topic two (2), identify the audience, and provide a preliminary thesis statement.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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