Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth
rate 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%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91901336
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

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 intermediate calculations. Round your answer to 2 decimal places.)

How do you calculate g the growth rate of dividends using

How do you calculate g, the growth rate of dividends, using the following variables? g=growth rate of future earnings and the growth in the common stockholders' investment in the firm ROE=the return on equity (net income ...

Company b has a beta of 061 the rate on australian treasury

Company B has a beta of 0.61, the rate on Australian Treasury Bonds is 4.75% and the expected return for the S&P/ASX 200 Index is 20.35%. Required: a) Calculate the required return (ie Expected Return) for Pacific Blue L ...

The copy department at microsoft wants to incorporate eva

The copy department at Microsoft wants to incorporate EVA in their business model. They want to explain how they can use EVA to price their copy services instead of giving free copies to departments. How would you help t ...

Looking for how to calculate on excelhomework

Looking for how to calculate on Excel. Homework assignment: Calculating annuity present values. Beginning three months from now, you want to be able to withdraw $2,500 each quarter from your bank account to cover college ...

Piping hot food services is evaluating a project that costs

Piping Hot Food Services is evaluating a project that costs $75,000. The project is expected to generate after-tax cash flows equal to $26,000 per year for four years. Their required rate of return is 14%. What is the ne ...

Please explain the united states has experienced continuous

Please explain, The United States has experienced continuous current account deficits since the early 1980s. What do you think are the main causes for the deficits and what would be the consequences of continuous US curr ...

Yu are given the following quotesus dollarbrazilian real

You are given the following quotes: U.S. dollar/Brazilian Real = 0.3459 U.S. dollar/Australian Dollar = 0.7567 U.S dollar/Chinese Yuan = 0.1962 What is the Brazilian Real/Australian Dollar cross rate? Enter your answer r ...

Long term financing stock valuation problem -two stage

LONG TERM FINANCING: STOCK VALUATION PROBLEM - Two Stage Dividend Discount Model: Allied Equipment Plc. a producer of agricultural farming materials and equipment has paid constant quarterly dividends for the years. Howe ...

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?

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved