Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Stewart Industries expects to pay a $3/share dividend at the end of the year (D1 $3.00), which is expected to grow at a rate of 25 percent a year until t 3, and then at a constant rate of 5 percent, thereafter (D3 $4.6875 and D4 $4.921875). The stock's beta is 1.2, the risk-free rate of interest is 6 percent, and the expected rate of return on the market portfolio is 11 percent. find out the company's current stock price?

[A] $37.29

[B] $53.69

[C] $59.05

[D] $29.89

[E] $30.64

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M921070

Have any Question? 


Related Questions in Basic Finance

In april2013 general electricge had a book value of equity

In April2013, General Electric(GE) had a book value of equity of $ 123.0$123.0billion,10.310.3billion shares outstanding, and a market price of $ 23.00$23.00per share. GE also had cash of $ 90.0$90.0billion, and total de ...

Problem 1you just inherited some money and a broker offers

Problem 1 You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the ...

Please help me solve this questionconsider a bond that

Please help me solve this. question. Consider a bond that promises the following cash flows. The yield to maturity is 12%. Year 0 1 2 3 4 Promised Payments 160 160 170 180 230 You plan to buy this bond, hold it for 2.5 y ...

Assume you work for an oil company that deals with oil

Assume you work for an oil company that deals with oil contracts and you are responsible for constructing those oil contracts. Assume you have an oil contract that has the following characteristics: Zero initial cost and ...

Consumer financial protection bureau as a result of the

Consumer Financial Protection Bureau: As a result of the Financial Reform Act of 2010, the Consumer Financial Protection Bureau was established and housed within the Federal Reserve. Explain the role of this bureau.

Discount window lending during credit crisis explain how

Discount Window Lending during Credit Crisis: Explain how and why the Fed extended its discount window lending to nonbank financial institutions during the credit crisis.

Question 1nbsp a cost of living rider that you purchase as

QUESTION 1   A cost of living rider that you purchase as part of your insurance life insurance policy gives you the option to buy additional insurance coverage to compensate for inflation. True False QUESTION 2  Riders t ...

1 in your own words which major us trading partner

1. In your own words, which major U.S. trading partner currently has the greatest country risk? Explain. Should the U.S. change its economic strategy with this country? Why/ why not? 2. Please discuss about the current U ...

Repurchase agreements based on what you know about

Repurchase Agreements Based on what you know about repurchase agreements, would you expect them to have a lower or higher annualized yield than commercial paper? Why?

Is the fed more accountable to congress or to the president

Is the Fed more accountable to Congress or to the president? Why? Who created the Fed? Who appoints the Fed chair?

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate