Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You own 260 shares of Abco, Inc. stock. The company has stated that it plans on issuing a dividend of $.50 a share at the end of this year and then issuing a final liquidating dividend of $2.05 a share at the end of next year. Your required rate of return on this security is 10 percent. Ignoring taxes, what is the value of one share of this stock today?

A. $2.37

B. $2.11

C. $2.60

D. $2.15

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939059

Have any Question? 


Related Questions in Basic Finance

During 2015 rainbow umbrella corp had sales of 920000 cost

During 2015, Rainbow Umbrella Corp. had sales of $920,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company ...

Consider the following analysis the rise and fall of a

Consider the following analysis: The rise and fall of a bond's price has a direct inverse relationship to its yield to maturity, or interest rate. As prices go up, the yield declines and vice versa. For example, a $1,000 ...

1 define the followinga a conditional sales contractb a

1. Define the following: a. A conditional sales contract b. A chattel mortgage 2. Under what conditions would a firm prefer the following: a. A "fixed-rate" term loan from a bank b. A "floating-rate" term loan, with the ...

Go to one of the web sites that contain video clips such as

Go to one of the Web sites that contain video clips (such as www.youtube.com) and view some video clips about personal loan applications. You can use search phrases such as "personal loans." Select one video clip on this ...

Sabrinas just paid an annual dividend of 179 per share this

Sabrina's just paid an annual dividend of $1.79 per share. This dividend is expected to increase by 2.5percent annually. Currently, the firm has a beta of .87 and a stock price of $31 a share. The risk-free rate is 4.5pe ...

Your customer has a yoga studio when she started the

Your customer has a Yoga Studio. When she started the business, she got a loan for $5,000 to equip the studio. Interest is $75 per month and depreciation on the furnishing is $50 per month. She pays $1,000 per month in r ...

1 why is it essential for researchers to establish a stable

1. Why is it essential for researchers to establish a stable baseline of behavior during the initial A phase of an ABA design? 2. Under what circumstances is an ABA design relatively useless as a way of testing the effec ...

Most of the customers of crunchy granola inc a tennessee

Most of the customers of Crunchy Granola Inc., a Tennessee manufacturer of the Dirty Hippy line of hemp products, are located in the New England area. To speed collections of its receivables, the firm is considering usin ...

1 an anonymous billionaire investor was quoted in the wall

1. An anonymous billionaire investor was quoted in the Wall Street Journal as asking: "Has there ever been a carry trade that hasn't ended badly?" What is a carry trade? Why might it end badly? 2. Interest rates on U.S. ...

Suppose that you subscribe to a service that gives you

Suppose that you subscribe to a service that gives you estimates of the theoretically correct volatilities of stocks. You note that the implied volatility of a particular option is substantially higher than the theoretic ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro