Question: Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then

Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then shrink by 5% for two consecutive years. After that, experts beleive that the company will be growing consistently by 5%. Based on these expectations, what should be the current value of a Walmart stock? (Required return = 13%)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Continuing to apply your role as a summer intern for the not-for-profit organization, you internship mentor has shared that they are very happy with your input. However, additional research needs to...

Q:

can you help me with those two questions , please 2. In order to buy a new car, you got 65,000$ credit from your local bank. According to the loan agreement, you will payback this loan in 5 equal...

Q:

Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then shrink by 5% for two consecutive years. After that,...

Q:

Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then shrink by 5% for two consecutive years. After that,...

Q:

Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then shrink by 5% for two consecutive years. After that,...

Q:

General Posts Files Doldur FINA 301 FIN... 3 more 6. Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then...

Q:

Walmart corp. has just distributed 3$ dividend to the shareholders. Market experts beleive that the company will grow by 10% in one year and then shrink by 5% for two consecutive years. After that,...

Q:

1. A business cannot be taxed as a corporation unless it is incorporated under local law. True/False 2. When a corporation receives property from a shareholder its basis equals that of the...

Q:

1. A business cannot be taxed as a corporation unless it is incorporated under local law. True/False 2. When a corporation receives property from a shareholder its basis equals that of the...

Q:

I need help from a Financial expert who is very familiar with exchange rate exposure & payout policy.I will adjust the price as you suggest. For some reason I am not able to do it here. Please be...

Q:

In the case "H. J. Heinz M&A" what is the financial analysis of the case? Please explain the financials. Send only a word file with the tables of financials and the explanation of each financial. I...

Q:

3a. You are newly recruited as a financial analyst of Dada Bank. You have collected the following information of Spain and Britain. Interest rate of Euro () per annum Interest rate of Pound (GBP) per...

Q:

Find the distance between the skew lines with parametric equations x = 3 + t, y = 2 + 6t, z = 2t, and x = 2 + 2s, y = 6 + 14s, z = -3 + 5s.

Q:

If f ( x , y ) = s i n ( 6 x 1 y ) , calculate d e l f d e l x and d e l f d e l y Solution Using the chain rule for functions of one variable, we have d e l f d e l x = ( , ) * d e l d e l x ( 6 x 1...

Q:

A cosmic-ray particle interacts with an energy-measuring device for a mere 12 zs. Whats the minimum uncertainty in the measured energy? Express your answer in joules and in eV.

Q:

Write a recursive method that has two parameters, first and second, that are both strings. The method should print all rearrangements of the letters in first followed by second. For example, if first...

Q:

Give pseudocode for a recursive method that sorts all letters in a string. For example, the string "goodbye" would be sorted into "bdegooy".

Q:

In a 2018 study reported in The Lancet, Molina et al. reported on a study for treatment of patients with HIV-1. The study was a randomized, controlled, double-blind study that compared the...

Q:

A long, straight coaxial cable consists of two thin, tubular conductors, the inner of radius a and the outer of radius b. Current I flows out along one conductor and back along the other. Show that...

Q:

Consider the following linear program. Min 8X + 12Y s.t. 1X + 3Y > 7 2X + 2Y > 10 6X + 2Y > 14 X, Y Z 0 (a) Use the graphical solution procedure to find the optimal solution. (Graph the constraint...

Q:

=+1. Are appointments principally made on the basis of merit, as opposed to connections or political loyalties?

Q:

=+4. What were the key elements of the 1978 Civil Service Reform Act?

Q:

=+2. What are the key tensions inherent in our public service system as identified by Ingraham?