+61-413 786 465

info@mywordsolution.com

## Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

1) i) A stock will pay constant dividends of \$9 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 17%. What is the value of the stock? Round to the penny.

ii) A stock just paid a dividend of \$4, and dividends will increase by 7% every year. Its required rate of return is 12%. What is the value of the stock? Round to the penny.

iii) A stock will pay a dividend of \$7 in one year and increase 3% every year after that. Its required rate of return is 13%. What is the value of the stock? Round to the penny.

iv) Which of the following is NOT a source of cash to a stockholder?

a) Value of the stock when sold back to the company

b) Net working capital per share

c)Value of the stock when sold to another investor

d) Dividends

Basic Finance, Finance

• Category:- Basic Finance
• Reference No.:- M93131998
• Price:- \$10

Priced at Now at \$10, Verified Solution

Have any Question?

## Related Questions in Basic Finance

### Your goal is to save 1000000 at retirement in 5 years you

Your goal is to save \$1,000,000 at retirement in 5 years. You expect you can earn 12.50% over the next 5 years. How much money do you have to save on an annual basis to reach your goal?

### What is inventory and why is it important for your business

What is inventory and why is it important for your business, investors or potential lenders?

### The required rate of return on a certain bond changes from

The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from \$900 to \$1,100. Determine the bond's price elasticity.

### Great start to our discussion on the cost of capital

Great start to our discussion on the Cost of Capital. Basically it is the cost of all financing for a business. As a manager would we want the cost of capital to be lower or higher? Why

### Tcs company has just started to deposit 225 at the end of

TCS company has just started to deposit \$225 at the end of each month into its employees retirement fund (i.e., the first deposit will take place one month from now). These deposits will continue for each employee until ...

### Question what are the risks associated with fixed income

Question: What are the risks associated with fixed income security. What are possible scenarios that may occur to illustrate the nature of these risks. Question: What are the alternatives a company may look into to prote ...

### Choose an industry and consider what and how it can hedge

Choose an industry, and consider what and how it can hedge in its favor. Introduce the industry, and state what it might hedge, and why. Explain what you would do if put in charge of the decision to hedge or not.

### What are the top 5 dos and donts regarding e-portfolio each

What are the top 5 "do's and don't's regarding e-portfolio? each one of your 5 do's and don't's from your perspective and how it affected your authoring your e-portfolio content and construction. i need some help I;m doi ...

### A 2-year treasury security currently earns 197 percent over

A 2-year Treasury security currently earns 1.97 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.60 percent per year. Calcula ...

### Please show formulanbsp and workyou have just purchased an

Please show formula  and work You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 7.31 percent, compounded annually. How much ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

### Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

### Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of \$ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

### Compute the present value of an 1150 payment made in ten

Compute the present value of an \$1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

### Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of \$ 699 per year for 19 years, given a discount rate of 6 percent per annum. As