ZuoTi.Pro
Question

what is the current price Po of stock that has the following cash flows while its...

what is the current price Po of stock that has the following cash flows while its returns rs is 12 %

D1 2 D2 =3 P2 =67

57.59

67

70

55.19

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A = 2 Az = 3 P2=67 Price (Po) + (D2t P2) (ltrs)? 2 (1+rs) 2 + (3+67) 1) (1 +12) (1+12.9.)? 1.79 + 55.80 57.59 Answer option A

0 0
Add a comment
Know the answer?
Add Answer to:
what is the current price Po of stock that has the following cash flows while its...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • what is the current price p lower case 0 of stock that has the following cash...

    what is the current price p lower case 0 of stock that has the following cash flows while its return r lower case s is 10% d1 = 2 p1 = 53 a 50 b 60 c 55 d 65

  • Determine the current price (P0) of a constant growth stock that has a D1 of $2.15,...

    Determine the current price (P0) of a constant growth stock that has a D1 of $2.15, a constant growth rate (g) of 5%, and a rate of return (rS) of 12%. $40 $50 $30 $20 A company has an annual coupon bond issue that has a coupon rate of 3%, a current price of $918.89, and 10 years of maturity. Determine the bond’s YTM. Cannot be determined without knowing its YTC. 4% 5% 3% Other things being equal, which of...

  • Brookes Corporation has an expected dividend (D1) of $1.60, a current stock price (Po of $40,...

    Brookes Corporation has an expected dividend (D1) of $1.60, a current stock price (Po of $40, and a constant growth rate of 7.6%. If new common stock is issued, the company will incur flotation costs of 6%, what is the company's cost of retained earnings? Your answer should be between 9.28 and 12.82, rounded to 2 decimal places, with no special characters. D Question 4 5 pts Several years ago, the Jakobe Company issued a $1,000 par value, non-callable bond...

  • Stock Valuation and Cash Flows Full Boat Manufacturing has projected sales of $115 million next year....

    Stock Valuation and Cash Flows Full Boat Manufacturing has projected sales of $115 million next year. Costs are expected to be $67 million and net investment is expected to be $12 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 per- cent, where it is expected to remain indefinitely. There are 5.5 million shares of stock outstanding and...

  • what is the price of the stock? Singing Fish Fine Foods has a current annual cash...

    what is the price of the stock? Singing Fish Fine Foods has a current annual cash dividend policy of $3.75. The price of the stock is set to yield a return of 12%. What is the price of this stock if the dividend will be paid a. for 11 years? b. for 17 years? c. for 41 years? d. for 50 years? e. for 100 years? f. forever?

  • If a firm has a P/E of 7, and its current price on the stock exchange...

    If a firm has a P/E of 7, and its current price on the stock exchange is R2.10, what is the earnings yield of a single share? Select one: O a. 333.33% o b. 14.29% c. 100% d. 700% Which of the following firms are more likely to have a high debt- equity ratio? Select more than one: a. One with large amounts of fixed assets b. One with extremely volatile cash flows c. One with stable, predictable cash flows...

  • 8. Ortiz Power Tools Co. recently paid a $0.80 per share dividend on its stock. The...

    8. Ortiz Power Tools Co. recently paid a $0.80 per share dividend on its stock. The company expects to t is be able to increase its dividend by 20% in each of the next two years and then by an annual growth rate of 8% for the foreseeable future, what is the current price of the stock assuming the marke in equilibrium and a required rate of return of 12.5%? a. Compute the following dividend values. Supporting Calculation Di D2...

  • 1. $39.00 per share is the current price for Foster Farms' stock. The dividend is projected...

    1. $39.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today? Select the correct answer. a. $46.19 b. $46.97 c. $46.58 d. $45.80 e. $45.41 2. Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.50 per share....

  • 2. El Lilly (LY): The following company. The following table contains historical dividends and free cash flows for...

    2. El Lilly (LY): The following company. The following table contains historical dividends and free cash flows for the CAPM Model: The stock hetais 16 Use beta to calculate the rate or Tree rate is 1.75% and the market risk premium is 7% 16. Use beta to calculate the rate of return. Assume the risk ividend Model: Calculate the who didends and the average growth in dividends. this as you as your estimate of future dividend growth. Use 2018 dividend...

  • Current stock price

    Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rateof 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?

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