Question

What is the price of a stock set to yield and 8% return, with a 4$...

What is the price of a stock set to yield and 8% return, with a 4$ annual dividend policy, if it will be paid for 15 years with a final dividend of $25.00?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Stock Price is present value of terminal value and annual dividend

Calculating Present Value,

Using TVM Calculation,

PV = [FV = 25, N = 15, PMT = 4, I = 0.08]

PV = $42.12

Stock Price = $42.12

Add a comment
Know the answer?
Add Answer to:
What is the price of a stock set to yield and 8% return, with a 4$...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Pfender Guitars has a current annual cash dividend policy of ​$4.00. The price of the stock is set to yield a return of 8​%. What is the price of this stock if the dividend will be paid: a.  for 8 yea...

    Pfender Guitars has a current annual cash dividend policy of ​$4.00. The price of the stock is set to yield a return of 8​%. What is the price of this stock if the dividend will be paid: a.  for 8 years and then the company repurchases the stock for $35​? b.  for 11 years and then the company repurchases the stock for $35​? c.  for 50 years and then the company repurchases the stock for $35​? d.  for 60 years...

  • what is the price of the stock? Singing Fish Fine Foods has a current annual cash...

    what is the price of the stock? Singing Fish Fine Foods has a current annual cash dividend policy of $3.75. The price of the stock is set to yield a return of 12%. What is the price of this stock if the dividend will be paid a. for 11 years? b. for 17 years? c. for 41 years? d. for 50 years? e. for 100 years? f. forever?

  • Almarai has just set the company dividend policy at 0.45 riyal per year. The company plans...

    Almarai has just set the company dividend policy at 0.45 riyal per year. The company plans to be in business forever. What is the price of this stock if the investor wants a return of 5%? Nadec has a current annual cash dividend policy of 4.00 riyal. The price of the stock is set to yield a return of 8%. What is the price of this stock if the dividend will be paid for 10 years and then the company...

  • Singing Fish Fine Foods has a current annual cash dividend policy of $2.75. The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of $2.75. The price of the stock is set to yield a return of 14%. What is the price of this stock if the dividend will be paid a. for 10 ​years? b. for 15 ​years? c. for 40 years? d. for 50 ​years? e. for 100 years? f. forever? (Please show a full equation for computing one of the answers)

  • Singing Fish Fine Foods has a current annual cash dividend policy of $2.75. The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of $2.75. The price of the stock is set to yield a return of 12%. What is the price of this stock if the dividend will be paid a. for 11 years? b. for 17 years? c. for 41 years? d. for 60 years? e. for 100 years? f. forever? a. What is the price of this stock if the dividend will be paid for 11 years?

  • Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.25. The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.25. The price of the stock is set to yield a return of 14 %. What is the price of this stock if the dividend will be paid a. 10 years b. 15 years c. 41 years d. 60 years e. 100 years f. forever I am having a tough time with the formula and would like to know how to better utilize a financial calculator. Thanks!

  • Singing Fish Fine Foods has a current annual cash dividend policy of ​$4.00. The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of ​$4.00. The price of the stock is set to yield a return of 14 %. What is the price of this stock if the dividend will be paid a.  for 11 ​years? b.  for 17 ​years? c.  for 40 ​years? d.  for 50 ​years? e.  for 100 ​years? f.  ​forever?

  • Singing Fish Fine Foods has a current annual cash dividend policy of $3.00. The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of $3.00. The price of the stock is set to yield a return of 10%. What is the price of this stock if the dividend will be paid a. for 10 years? b. for 17 years? c. for 41 years? d. for 50 years? e. for 100 years? f. forever?

  • 2. Last year, the dividend yield of a stock was 4.9% when the stock was sold...

    2. Last year, the dividend yield of a stock was 4.9% when the stock was sold for $43.50 per share. The stock pays a constant annual dividend. What is the current price of the stock if the current dividend yield is 4%? (Hint: calculate the stock dividend first.) 3. An investment earns 10% and 15% in the first year and second year, respectively, and loses 12% the third year. Calculate the arithmetic average return, the total compound rate of return...

  • Singing Fish Fine Foods has a current annual cash dividend policy of $4.00 The price of...

    Singing Fish Fine Foods has a current annual cash dividend policy of $4.00 The price of the stock is set to yield a return of 12 % What is the price of this stock if the dividend will be paid a.  for 10 ​years? b.  for 17 ​years? c.  for 41 years? d.  for 60 years? e.  for 100 years? f.  ​forever? King Waterbeds has an annual cash dividend policy that raises the dividend each year by 5​%. The most...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT