What would you expect the stock price to be in six years

Assignment Help Financial Management
Reference no: EM131319502

Mitech Corp's stock price has been growing at approximately 10% for several years and is now $26. Based on past growth rate performance, what would you expect the stock's price to be in six years? Round the answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131319502

Questions Cloud

Using all four investment assessment methods : Assume ABC Company has chosen to invest in new manufacturing equipment. The initial cost of the equipment is $1,200,000. The equipment has a useful life of 20 years. The company uses straight-line depreciation. Using all four investment assessment me..
Define gaap and its needs in financial decision-making : Define GAAP and its needs in financial decision-making. Also discus five important accounting principles? Discuss the primary role of the financial system in the economy and describe the two basic ways in which fund transfers take place? What are com..
Issued preferred shares at a face value : Fox Woodworking Inc. issued preferred shares at a face value of $54 to yield 8% 10 years ago. The shares are currently selling at $61. What return are they earning for investors who buy them today?
What is the most you would be willing to pay for share : The Spinnaker Company has paid an annual dividend of $2.20 per share for some time. Recently, the board of directors voted to grow the dividend by 6.5% per year from now on. What is the most you would be willing to pay for a share of Spinnaker if you..
What would you expect the stock price to be in six years : Mitech Corp's stock price has been growing at approximately 10% for several years and is now $26. Based on past growth rate performance, what would you expect the stock's price to be in six years?
How much money do you receive from the buyer : You would like to sell 190 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.38 and $15.33, respectively. You place a limit sell order at $15.37. If the trade executes, how much money do you receive from the buyer?
What are the net cash flows of the project for years : H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,460,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to gen..
Assume the tax rate and required return on the project : H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,260,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wor..
What was the return of stock market that day : Assume on a given day in March, the Dow Jones Industrial Average reached a new low at a close of 6,947.25, which was down 88.09 that day. What was the return (in percent) of the stock market that day.

Reviews

Write a Review

Financial Management Questions & Answers

  Identify the benefits and drawbacks of using the capm

Illustrate why some managers have difficulty applying the Capital Asset Pricing Model (CAPM) in financial decision making.

  Increase in operating expense

Suppose you have a firm that faces a %50 tax rate. Suppose you have an increase in operating revenue of $25000 and an increase in operating expense of $30000, what is your change in net cash flow?

  What was the annual percentage increase

In 1901, the first U.S. Open Golf Championship was held. The winner’s prize money was $210. In 2012, the winner’s check was $1,410,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period? ** I've answered Re..

  Cost of trade credit-retailer effective cost of trade credit

Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 3/10, net 40, but routinely takes 50 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) Wha..

  Two outstanding publicly traded bonds

One company has two outstanding publicly traded bonds. The two bonds will both mature in ten years and have the same coupon rate. One of the bonds has a sinking fund; the other one does not. Which bond will have the higher yield to maturity today?

  Rent per month must you charge in order to break even

You have decided to buy a small apartment building for $100,000 near a local college. You used $10,000 as a down payment and obtained a mortgage from a local bank for the remaining $90,000. The annual mortgage payment to the bank is $11,500. how much..

  What rate will give you same effective annual rate of return

You are currently earning 12% compounded semiannually. Your investment company is switching all accounts to daily compounding. What rate will give you the same effective annual rate of return as you are receiving now?

  About the current exchange rate

In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 Yen per dollar, what would the car be selling for today in U.S. dollars? Show..

  Calculate accumulated depreciation over four years

Reversing Rapids Co. purchases an asset for $188,604. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has..

  What is the total rate of return on the bond

Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% (BEY or APR). The bond has 3 years until maturity. What is the total rate of return on the bond over the six month period?

  Advantage of designated Roth accounts compared to Roth IRAs

Which of the following is an advantage of designated Roth accounts compared to Roth IRAs?

  Ethical strategies can be potentially dangerous

Which of the following ethical strategies can be potentially dangerous for multinational companies in normal business operations? If you were using the 9-Cell industry attractiveness/Business Strength Matrix, what is correct?

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