1. The last paid dividend of the company is $5 The beta coefficient of this company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. The last paid dividend of the company is $5 The beta coefficient of this company is 0,8 The risk-free rate is 2% The market return is 8% What is the theoretical price of the share if the dividend is expected to grow 3% annually 2.In June 1998 the government of the RF had issued 20-year Eurobonds with a fixed annual coupon rate of 11%. The par value $1000, issued number 3500000. In June 2016 they were being traded with a YTM 4,6%. What was the theoretical price (net) of these bonds in the market in June 2016? 1. The last paid dividend of the company is $5 The beta coefficient of this company is 0,8 The risk-free rate is 2% The market return is 8% What is the theoretical price of the share if the dividend is expected to grow 3% annually 2.In June 1998 the government of the RF had issued 20-year Eurobonds with a fixed annual coupon rate of 11%. The par value $1000, issued number 3500000. In June 2016 they were being traded with a YTM 4,6%. What was the theoretical price (net) of these bonds in the market in June 2016?
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To calculate the theoretical price of the share we can use the dividend discount model P D ... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these finance questions
-
2. Study carefully the information extracted from an importers invoice below and answer the questions that follow. DESCRIPTION Filing Cabinets Cookers Suit Cases Additional Information Total FOB...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Let Z[] be the following set of rational numbers { a Z, k N} (and recall that N = {0, 1, 2,...} in this class). Let the addition and multiplication for Z[] be the usual addition and multiplication...
-
Why does an increase in the ratio of current assets to total assets decrease both profits and risk as measured by net working capital? How do changes in the ratio of current liabilities to total...
-
Pew Research reported that the typical response rate to their surveys is only 9%. If for a particular survey 15,000 households are contacted, what is the probability that at least 1,500 will agree to...
-
Quilts R Us (QRU) is considering investing in a new patterning attachment with the cash flow profile shown in the table below. QRU's MARR is 13.5 percent/year. a. What is this investment's external...
-
Gundy Company expects to produce 1,200,000 units of Product XX in 2014. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are direct...
-
1. A clothes dryer rates at 4000 W runs for 1.50 hours each day. it uses utility power at 240 V. how much current does the dryer use? 2. For the clothes dryer in the previous question, how much does...
-
Design a steam power cycle that can achieve a cycle thermal efficiency of at least 40 percent under the conditions that all turbines have isentropic efficiencies of 85 percent and all pumps have...
-
A thick slab of Pyrex glass of thickness t = 5 cm just fabricated is at T = 300C when it is splashed with a large bath of water on one face. The large water splash at the surface maintains a...
-
1. Discuss an example of a company, organization,brand,or public figure that did something that was legal but, in your opinion, unethical . 2.Discuss an example of a company, organization,brand,or...
-
The Ujsag Printing Co. wants to calculate the cost of adding a third machine. Comment on the following statement made by the company accountant: If we add a third printing press, our total costs will...
-
What is a microaggression? provide example
-
Suppose the demand for Tesla cars decreases and the supply for pens increases. What effect will it have on the equilibrium price for Tesla cars? Explain
-
Construct a flowchart illustrating the BIR (Philippines) tax assessment process: administrative and judicial remedies
-
LennoCorp captured information regarding the current rates paid for jobs in the firm and new rates based on a recent job evaluation. This information was graphically represented in a scattergram...
-
Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05 hour @ $32.00/hr. = $ 1.60 The company manufactured 100,000 bags of Cheese-Be-Good in December and used...
-
Suppose that TapDance, Inc.s capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of debt is 8 percent, while its cost of equity is 13 percent. If the...
-
Consider the characteristics of the following three stocks: The correlation between Thumb Devices and Air Comfort is -0.12. The correlation between Thumb Devices and Sport Garb is -0.21. The...
-
Compute the IRR statistic for Project E and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 8percent. Project E...
-
Based on the photographs in Figure 26.13, in which segment(s) is the Antp gene normally expressed? Figure 26.13: (a) Normal fly (b) Antennapedia mutant
-
The bush baby, a small African mammal, is a remarkable jumper. Although only about 8 inches long, it can jump, from a standing start, straight up to a height of over 7 feet! Use the particle model to...
-
Hicham El Guerrouj of Morocco holds the world record in the 1500 m running race. He ran the final 400 m in a time of 51.9 s. What was his average speed in mph over the last 400 m? A. 14.2 mph B. 15.5...
Study smarter with the SolutionInn App