What is a present value of a stock, if the price for now is $40? Use a
Question:
What is a present value of a stock, if the price for now is $40? Use a discount rate of 10% and period of 45 years. Please refer to the generalized dividend valuation method.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (5 reviews)
The present value of a stock using the generalized dividend valuation method is calculated as follow...View the full answer
Answered By
Caroline Kinuthia
Taking care of the smaller details in life has a larger impact in our general well being, and that is what i believe in. My name is Carol. Writing is my passion. To me, doing a task is one thing, and delivering results from the task is another thing. I am a perfectionist who always take things seriously and deliver to the best of my knowledge.
4.90+
1933+ Reviews
4270+ Question Solved
Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
Question Posted:
Students also viewed these Business questions
-
What is a present value of a stock, if the price for now is $40? Use a discount rate of 10% and period of 45 years. Refer to the generalized dividend valuation method.
-
Calculate the intrinsic value of Disney by conducting a two-stage dcf company-level valuation analysis, Compare your results to the current market capitalization of the company and Perform a...
-
calculate the return of stock X in May and June 6. The prices of Stock X are: Date 4/30/2019 5/31/2019 6/28/2019 Stock X $164.43 $161.33 $173.55 Calculate the returns of Stock X in May and June of...
-
Use the graphs of f and g to solve Exercises 8390. y = g(x) HH y .y = f(x) # X
-
1. Explain the dangers of using discounting as a pricing strategy for increasing sales. 2. Use the Web to research price wars. What conditions usually prompt price wars? What impact do price wars...
-
Determine the magnitudes and directions of the currents through R1 and R2 in Fig. 19-59. V1 =9.0 V R1 = 22N ww- R2 = 18 2 V3 = 6.0 V
-
P(x < 160) The random variable x is normally distributed with mean = 174 and standard deviation = 20. Find the indicated probability.
-
Cummings Inc. had the following reconciliation at December 31, 2017: Fair value of plan assets.......................$5,000 PBO...............................................4,200 Funded...
-
The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales $231,000 Cost of goods sold 116,000 Gross profit 115,000 Fixed charges (other than interest) 29,700 Income before...
-
What is the motivation for buying foreign stocks?
-
To capture investor interests, Exchange Traded Funds (ETF) have become the latest market innovation. Since 1990, they have been actively traded in a form of basket of securities. What are the main...
-
Explain, using the words expenditures and leakages, why making taxes and imports endogenous reduces the multiplier.
-
The ASP is conducting a local investigation of an ammunition malfunction. No one was injured. After they filed the preliminary report, how many days does the ASP have to file the detailed incident...
-
Following are the financial data for Binari Jaya Sdn Bhd as at 3 1 December 2 0 2 2 . Revenue (Sales) RM 1, 370, 100 Account Receivable RM 540, 000 Long Term Loan RM 690, 000 Cost of goods sold RM...
-
= 1. Write a Matlab function that uses as input, two vectors = (ar, ay, az) and b (bx, by, bz). The function should compute the scalar product d = a.b, and the cross product, c= axb by using the...
-
Simplify. 3n 4 3 47 4m n Write your answer using only positive exponents.
-
1 . Record all necessary journal entries for the 2 0 2 3 transactions. Note: Not all transactions in December require a journal entry. 2 . Post the journal entries to the T - Accounts. 3 . Prepare an...
-
Your manufacturing process makes parts such that each part meets specifications with probability 0.98. You need a batch of 250 parts that meet specifications. How many parts must you produce to be at...
-
How can you tell from the vertex form y = a(x - h) 2 + k whether a quadratic function has no real zeros?
-
What changes did the Federal Deposit Insurance Reform Act of 2005 make to the deposit insurance assessment scheme for DIs?
-
Under the Federal Deposit Insurance Reform Act of 2005, how is a Category I deposit insurance premium determined?
-
Under Basel III, how are residential one-to four-family mortgages assigned to a credit risk class?
-
A firm has $358,000 in credit sales and $140,000 in accounts receivable. Compute the average number of collection days. how does the numbers relate to the terms of 2/10 net/30 ?
-
A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years. 1. What is the monthly payment? 2. What is the current loan balance? 3. Assume this is...
-
Compute the interest rate if future value (FV) = $6,335, present value (FV) = $3,575, and number of years (t) = 7.
Study smarter with the SolutionInn App