(Answered) Company x has a beta of 13 the company has not been paying

Finance

Company X has a beta of 1.3. The company has not been paying dividends and does not plan to in the next few years . However , four years from now , the company expects to pay a Rs 1.50 dividend , which will maintain a constant 5 percent annual growth rate. If you have found the return on 10 year U.S Treasury bond is 5% and the expected market risk premium is 5.5%, what is the current price of a share of Company X?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92766870
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Antiques r us is a mature manufacturing firm the company

Antiques R Us is a mature manufacturing firm. The company just paid a $9 dividend, but management expects to reduce the payout by 8 percent per year, indefinitely. If you require a 14 percent return on this stock, what w ...

Betsy ross owns 921 shares in the hanson fabrics company

Betsy Ross owns 921 shares in the Hanson Fabrics Company. There are 16 directors to be elected, and 32,500 shares outstanding. The firm has adopted cumulative voting. a. How many total votes can be cast? (Do not round in ...

The ola company issued bonds at 1025 in 1000 increments you

The Ola company issued bonds at 10.25% in $1,000 increments. You invested. The bonds are currently trading at 9.5% in the open market wit 8 years left. Calculate the present value of your investment.

What is the number of shares that must be issued to the new

What is the number of shares that must be issued to the new investor in order for the investor to earn his target return?

Question - how do book value and market value differ

Question - How do book value and market value differ? Provide an example found in a peer-reviewed journal article.

Is there a way to protect and secured the file with a

Is there a way to protect and secured the file with a password, checked compatibility, and removed inappropriate information on Powerpoint?

Mae has a financial document return of 010 per year over

Mae has a financial document return of 0.10 per year over the next 30 years. She has wants to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 ...

Jane and john doe are twinsnbspjane saves 10000 per year

Jane and John Doe are twins. Jane saves $10,000 per year from age 25 to 34 and nothing from age 35 onward (10 years of saving in total). John saves nothing from age 25 to 34 and $10,000 from age 35 to 64 (30 years of sav ...

Question - you purchase a machine for 100000 such machine

Question - You purchase a machine for $100,000. Such machine has a 3-year MACRS classification. If the machine is sold at the end of the second year for $45,000, what are the after-tax proceeds from the sale, assuming yo ...

A client has identified two annuities that are available

A client has identified two annuities that are available for purchase, The first annuity pays $1,000 at the end of each month over a 3-year period at a nominal rate of 13% p.a. The second annuity pays $3,000 at the end o ...

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

Recent Questions

Ask Basic Finance Expert