Question

show the steps plz

Gomi Waste Disposal stock is currently priced at 88.59 dollars per share and is expected to pay its next dividend, which is e

0 0
Add a comment Improve this question Transcribed image text
Answer #1

required rate = risk free rate+risk premium = 6.44+11.01 = 17.45

Stock price in 1 year = stock price current*(1+required rate)-dividend in 1 year

=88.59*(1+0.1746)-4.43

=

99.63
Add a comment
Know the answer?
Add Answer to:
show the steps plz Gomi Waste Disposal stock is currently priced at 88.59 dollars per share...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • plz help with steps shown Fairfax Pizza stock is currently priced at 39.38 dollars per share...

    plz help with steps shown Fairfax Pizza stock is currently priced at 39.38 dollars per share and is expected to pay its next dividend, which is expected to be 2.65 dollars, in 1 year. The stock has a beta of 0.55. The market has an expected return of 13.76 percent, the risk-free rate is 3.37 percent, and the inflation rate is 2.24 percent. What is the stock price of Fairfax Pizza expected to be in 1 year? Number

  • show the steps plz. The expected return on the market is 15.35 percent, the inflation rate...

    show the steps plz. The expected return on the market is 15.35 percent, the inflation rate is 2.53 percent, and the risk-free return is 3.19 percent. Refresher stock is currently priced at $59.83 per share and is expected to pay its next annual dividend in 1 year. Refresher's next dividend is expected to be $2.73 per share and the stock is expected to be priced at $64.89 in 1 year. What is Refresher's beta? Round your answer to 2 decimal...

  • Oxygen Optimization stock is currently priced at 59.81 dollars per share. The stock is expected to...

    Oxygen Optimization stock is currently priced at 59.81 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 2.27 percent per year forever starting after the next dividend is paid in 1 year. The expected return on the stock is 14.07 percent per year. What is the dividend expected to be in 8 years?

  • 8. Oxygen Optimization stock is currently priced at 65.51 dollars per share. The stock is expected...

    8. Oxygen Optimization stock is currently priced at 65.51 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 3.57 percent per year forever starting after the next dividend is paid in 1 year. The expected return on the stock is 13.08 percent per year. What is the dividend expected to be in 8 years?

  • Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 115,000 dollars...

    Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 115,000 dollars today. During year 1, the project is expected to have relevant revenue of 116,000 dollars, relevant costs of 32,000 dollars, and relevant depreciation of 28,000 dollars. Gomi Waste Disposal would need to borrow 115,000 dollars today to pay for the equipment and would need to make an interest payment of 3,000 dollars to the bank in 1 year. Relevant net...

  • Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...

    Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 164,000 dollars today. During year 1, the project is expected to have relevant revenue of 118,000 dollars, relevant costs of 38,000 dollars, and relevant depreciation of 28,000 dollars. Gomi Waste Disposal would need to borrow 164,000 dollars today to pay for the equipment and would need to make an interest payment of 6,000 dollars to the bank in 1 year. Relevant net...

  • Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...

    Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 116,000 dollars today. During year 1, the project is expected to have relevant revenue of 92,000 dollars, relevant costs of 35,000 dollars, and relevant depreciation of 17,000 dollars. Gomi Waste Disposal would need to borrow 116,000 dollars today to pay for the equipment and would need to make an interest payment of 4,000 dollars to the bank in 1 year. Relevant net...

  • Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...

    Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 110,000 dollars today. During year 1, the project is expected to have relevant revenue of 123,000 dollars, relevant costs of 42,000 dollars, and relevant depreciation of 27,000 dollars. Gomi Waste Disposal would need to borrow 110,000 dollars today to pay for the equipment and would need to make an interest payment of 7,000 dollars to the bank in 1 year. Relevant net...

  • Middlefield Motors stock is expected to be priced at 61.34 dollars in 1 year. It is...

    Middlefield Motors stock is expected to be priced at 61.34 dollars in 1 year. It is expected to pay its next dividend, which is expected to be 2.44 dollars, in 1 year. The stock has a beta of 0.73. The market has an expected return of 14.65 percent, the risk-free rate is 6.6 percent, and the inflation rate is 1.24 percent. What is the current price of Middlefield Motors stock?

  • Middlefield Motors stock is expected to be priced at 89.67 dollars in 1 year. It is...

    Middlefield Motors stock is expected to be priced at 89.67 dollars in 1 year. It is expected to pay its next dividend, which is expected to be 2.28 dollars, in 1 year. The stock has a beta of 0.47. The market has an expected return of 12.56 percent, the risk-free rate is 4.32 percent, and the inflation rate is 2.32 percent. What is the current price of Middlefield Motors stock?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT