(Answered) Tattletale news corp has been growing at a rate of 20 per

Finance

Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growthrate in earnings and dividends to continue for another 3 years.

a. If the last dividend paid was $2, what will the next dividend be?

b. If the discount rate is 15% and the steady growth rate after 3 years is 4%, what should the stock price be today?

Growth rate. .......20.00%
Last dividend paid... $2.00
Discount rate..........15.00%
Steady growth rate (b).4.00%

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91616377
Price:- $12

Verified Expert

Priced at $24 Now at $12, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Questions -q1 circuit city stores cc recently paid a 16

Questions - Q1: Circuit City Stores (CC) recently paid a $.16 dividend. The dividend is expected to grow at a 23 percent rate. At the current stock price of $7.96, what is the return shareholders are expecting? Q2:Helm I ...

You have just made your first 5200 contribution to your

You have just made your first $5,200 contribution to your retirement account. Assume you earn a return of 12 percent per year and make no additional contributions. a. What will your account be worth when you retire in 43 ...

Your father who is 60 plans to retire in 2 years and he

Your father, who is 60, plans to retire in 2 years, and he expects to live independently for 3 years. Suppose your father wants to have real income of $40,000 in today's dollars in each year after he retires. His retirem ...

Express in other words explain the concept of cost of

Express in other words explain the concept of cost of capital? Do you believe that a firm should use the same cost of capital for all of its projects? Why or why not?

Explain how the company newmans own brand fulfills the

Explain how the company Newman's Own brand fulfills the definition of a business for profit and a non-profit business at the same time. Consider in the response the functions of business, entrepreneurship and production ...

Youre prepared to make monthly payments of 210 beginning at

You're prepared to make monthly payments of $210, beginning at the end of this month, into an account that pays 6.2 percent interest compounded monthly. How many payments will you have made when your account balance reac ...

The books definition of financial leverage is nbspthe use

The Books definition of financial leverage is " The use of debt in a firm's capital structure is called financial leverage . The more debt a firm has (as a percentage of assets), the greater is its degree of financial ...

1 what considerations do you need to take when considering

1. What considerations do you need to take when considering "time value of money"? 2. Why is the following statement true? "A dollar today is worth more than a dollar tomorrow."

One year ago you bought common stock for 20 per share today

One year ago, you bought common stock for $20 per share. Today the stock is selling for $19 per share. During the year, you received four dividend payments, each in the amount of $0.20 per share. (a) What was your rate o ...

Assignment - write a financial analysis for a us-based

Assignment - Write a financial analysis for a U.S.-based, publicly traded organization. To begin, research the latest two years of financial statements for a publicly traded organization based in the United States. Obtai ...

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