Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Telus, a Canadian wireless communications company, earned $3.4 per share in 2010 and paid dividends of $1.72 per share. Analysts forecast an annual earnings growth rate of 7.9 percent for the next 5 years. Based on similar-risk companies, the estimated required rate of return on Telus stock is 8.9 percent. It is assumed that from 2015 onward, Telus will maintain its current reinvestment rate but earn only its cost of capital on new investments. Estimate Telus' current stock price. (Round your answer to the nearest cent.)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92502366
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Basic Finance

Xyz stock price and dividend history are as

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End   2010 $ 122               $ 5                      2011 132               $ 5                      2012 $ 110   ...

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 ...

Morgan jennings a geography professor invests 50000 in a

Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10-ye ...

Roll tide inc has 10000 shares of common stock outstanding

Roll Tide, Inc. has 10,000 shares of common stock outstanding at a price of $18 a share. The firm's beta is 1.3 and the market risk premium is 6.5%. The Treasury bill rate is 3.5%. There are 9,000 shares of preferred sto ...

Follow up - calculating a bonds yield to maturity amazon

Follow Up - Calculating a Bonds Yield to Maturity Amazon has a bond with a 10% annual coupon rate, 15 years to maturity and a par value of $1000. The current price is $928.09. Calculate the Yield to Maturity.

Bill inc common stock is expected to pay a 202 dividend at

Bill Inc. common stock is expected to pay a $2.02 dividend at the end of the year and is in a risk class that requires an 8.5% required return. If this dividend is expected to grow forever at a 3.2% rate, what is the est ...

Market values and book values lo 1klingon widgets inc

M arket Values and Book Values [LO 1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $6.7 million. Klingon's current balance sh ...

Rhyan has owned and operated antilles spice a specialty

Rhyan has owned and operated Antilles Spice, a specialty restaurant in Boca Raton, for the past three years. Business has been good and he wants to expand into Fort Lauderdale and Miami. He develops a new detailed busine ...

Assignment -background - youre a group of investment

Assignment - BACKGROUND - You're a group of investment analysts who work for a large investment consulting firm based in Australia. There's one big institutional investor from overseas that is interested in investing in ...

How much money would you need to deposit today at 3000

How much money would you need to deposit today at 30.00% annual interest compounded monthly to have $40,610 in the account after 2 years?

  • 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