The risk free rate is 2 99 and the market risk premium is 5 48 A stock with a of 1 69 just paid a dividend of $2 86 The dividend is expected to grow at 24 25 for three years and then grow at 3 31 forever What is the value of the stock Submit Answer format Currency Round to 2 decimal places The ris...

To calculate the value of the stock we can use the Gordon Growth Model also known as the Dividend D ...

The risk-free rate is 2.99% and the market risk premium is 5.48%. A stock with a...

Fantastic news! We've Found the answer you've been seeking!

Question:

image text in transcribed

Related Book For answer-question

Financial reporting, financial statement analysis and valuation a strategic perspective

ISBN: 978-0324789416

7th Edition

Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw

See More Books

Posted Date: Mar 05, 2024 02:38 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
The risk hee rate is 1 99% and the market risk premium is 5 98% A stock whap of 96 just paid a dividend of $123 The dividend is expected to grow at 21.37% for five years and then grow at 4 75%...
Question 3 A bullish signal is most likely sent by B a low debt/equity ratio. A a high P/E ratio. B a high good beta and a low bad beta. Question 4 a bullish candlestick with no upper shadow. How to...
The following questions relate to issues faced by partnerships: 1. The text suggests that a written partnership agreement should be drawn up between the partners in a partnership. One benefit of an...
Why is implementation of a marketing plan as important as plan development in achieving marketing success?
Refer to the information in QS 13-4. Use that information for Tide Corporation to determine the 2016 and 2017 common-size percents for cost of goods sold using net sales as the base. Data From QS...
The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After...
Mr. Smith, a high school teacher in Gander, decided to quit his current job and opened a private tutorial firm. He gave up his $38,940 a year job as a teacher. He used $27,500 of his savings that...
Assuming Jay and JoAnn have this same business that they run as a partnership, prepare their joint Federal income tax return for 2022. Attached is the copy of the partnership K-1 for each of them....
ABC Corp. has 675,000 shares of $1 par value common stock. The current market price is $100. The CEO of the company is considering either a $1 per share cash dividend, or 12% stock dividend, or a...
10:00 Module name: Taxation Planning 2A Module code: TXP02A2 Year: 2022 Semester: First Assessment: Continuous Assessment 3 Release date: 1 April 2022 Submission deadline: 22 April 2022 INFORMATION:...
1. What could be the reasons for the price increase in offline retail stores? 2. From the information given in the case, can one conclude that there was a differential price response from the online...
On July 1, a company sells inventory on account to a customer for $40,000, with terms of 1/15, n/30. The company uses the net method to account for sales discounts. The customer pays the amount due...
What is one way that Netflix has changed the film/television industry? Can social media (Facebook, Twitter, Instagram, etc.) affect what movie/TV/song we might watch or listen to? Why or why not?...
A firm's end-of-year free cash flow is anticipated to be $14 million. The company's free cash flows are expected to grow 15 percent a year forever. The firm's weighted average cost of capital is 18...
Call option is $7.89. After each period, there is a 45% chance for the stock price to go up, 20% chance to stay the same, and 35% chance to go down. Assume is the same as the risk-free rate. (a)...
Find the APR in each of the following cases: NUMBER OF TIMES COMPOUNDED Semiannually Monthly Weekly Infinite EAR APR 10.4% 8.9 11.6 15.4
Boston Scientific, a medical device manufacturer, reported net income (amounts in millions) of $1,062 on sales of $5,624 during Year 4. Interest expense totaled $64. The income tax rate was 35...
Why is it appropriate to use the required rate of return on equity capital (rather than the weighted average cost of capital) as the discount rate in the residual income valuation approach?
Three years of combined data for two firms appear below (in millions). The two firms experienced similar growth rates in revenues during the three-year period. One of these firms is Accenture Ltd., a...
Draw a block diagram for the feedback control of a liquid-level system, which consists of a valve with a control knob (0\%-100\%) and a liquid-level sensor. Clearly label essential components and...
A control system is represented using the block diagram shown in Figure 10.59. Sketch the root locus with respect to the proportional control gain K. Determine all the values of $K$ for which the...
Roughly sketch the root locus with respect to $K$ for the equation of $1+K L(s)=0$ and the following choices for $L(s)$. Make sure to give the asymptotes, arrival or departure angles, and...

The risk-free rate is 2.99% and the market risk premium is 5.48%. A stock with a...

Question:

Expert Answer:

To calculate the value of the stock we can use the Gordon Growth Model also known as the Dividend D... View the full answer

Financial reporting, financial statement analysis and valuation a strategic perspective

Students also viewed these finance questions