Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939785

Have any Question?


Related Questions in Basic Finance

The risk-free rate of return is 52 percent and the market

The risk-free rate of return is 5.2 percent and the market risk premium is 8.4 percent. What is the expected rate of return on a stock with a beta of 1.34?

Suppose a firm uses sales teams to market their products

Suppose a firm uses sales teams to market their products. For example, a construction equipment manufacturer may assign three sales agents to a team so each team member can specialize in particular product functions (e.g ...

Your firm is contemplating the purchase of a new 585000

Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $95,000 at the end of that time. ...

Your portfolio contains 20000 of air canada stock which has

Your portfolio contains? $20,000 of Air Canada? stock, which has a beta of? 1.4, and? $30,000 of WestJet? stock, which has a beta of 1.8. What is the beta of your? portfolio?

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?

Corn in has an odd dividend policy the company has just

Corn, In., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another ...

What is assumptions underlying single index model and why

What is assumptions underlying Single index model and why use thoes assumptions? Compare assumptions of Single Index Model with other formula?

A stock is trading at 78 per share the stock is expected to

A stock is trading at $78 per share. The stock is expected to have a year-end dividend of $5 per share (D1=$5), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 15 ...

Gracchus inc stock is selling for 4181 a share based on a

Gracchus, Inc. stock is selling for $41.81 a share based on a 8.2 percent rate of return. What is the amount of the next annual dividend if the dividends are increasing by 3.8 percent annually?

Bacchus vineyards inc is expected to pay its first annual

Bacchus Vineyards, Inc. is expected to pay its first annual dividend five years from now. That payment will be $4.39 a share. Starting in year six, the company will increase the dividend by 3.7 percent per year. The requ ...

  • 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