Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Coats & More just announced that it will commence paying annual dividends next year. It plans to pay $.75 year for four years, $.90 a year for the following three (3) years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you need a 12 percent rate of return?

A) $4.09

B) $4.40

C) $3.65

D) $5.89

E) $3.34

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91145426

Have any Question?


Related Questions in Basic Finance

Calculate the value of a bonds with face value of 1000 a

Calculate the value of a bonds with face value of $1,000 a coupon interest rate of 8 percent paid semiannually; and a maturity of 10 years. Assume the following discount rate (a) 6 percent (b) 8 percent (c) 10 percent

Question - time value of money answer the following

Question - TIME VALUE OF MONEY Answer the following questions: a. Assuming a rate of 10% annually, find the FV of $1,000 after 5 years. b. What is the investment's FV at rates of 0%, 5%, and 20% after 0, 1, 2, 3, 4, and ...

Question - consider the following data for nike inc in 2009

Question - Consider the following data for Nike Inc: In 2009 it had $19,250 million in sales with a 10% growth rate in 2010, but then slows by 1% to the long-run growth rate of 5% by 2015. Nike expects EBIT to be 10% of ...

An all-equiry business has 175m shares outstanding selling

An all-equiry business has 175M shares outstanding selling for $20/share. Management believes interest rates are unreasonably low and decides to execute a leveraged recapitalization. It will raise $1B in debt and repurch ...

If you insulate your office for 16000 you will save 1600 a

If you insulate your office for $16,000, you will save $1,600 a year in heating expenses. These savings will last forever. a.  What is the NPV of the investment when the cost of capital is 5%? 10%? b.  What is the IRR of ...

What is marketing discipline what is most peoples

What is marketing discipline? What is most people's perception of marketing discipline? Name an organization that has done a great job marketing. What did they do to make you feel this way?

Question - assume a company has 10 million shares of stock

Question - Assume a company has 10 million shares of stock outstanding and that its Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 300,000 Cost of P ...

How can businesses use technology and relationships to

How can businesses use technology and relationships to reduce their environmental impact?

An equally weighted portfolio consists of 64 assets which

An equally weighted portfolio consists of 64 assets which all have a standard deviation of 0.276. The average covariance between the assets is 0.106. Compute the standard deviation of this portfolio. Please enter your an ...

You want to invest in a stock that pays 5 annual cash

You want to invest in a stock that pays $5 annual cash dividends for the next four years. At the end of the four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is a fair price fo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

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