Solved: Calculating the value of a stock, Finance Basics

+44 141 628 6080
[email protected]

Calculating the value of a stock

Problem: How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth in year 3. The growth will be a consistent 8% per year after that. Also similar investments are returning 14%. Is the stock value $116.10, 91.47, 88.31, or 71.49.

What are the steps to solve this?

Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculating the value of a stock

Reference No:- TGS01451374

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Assess the profit potential using marginal analysis

One question that arose during the meeting was about how the firm's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess the profit potential using marginal analysis.

Q : Identify and define the key industry success factors

Identify and define the key industry success factors. Create a competitive ranking metric based on the key industry success factors. Use a weighted average approach.

Q : Bank loan request

I am having a hard time understanding this question and choosing the correct answer. Any help would be kindly appreciated. If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider

Q : Amount of raw materials transferred to work in process

If the ending balance in raw materials was $6,000, the amount of raw materials transferred to work in process inventory is:

Q : Calculating the value of a stock

How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth i

Q : Niagara stock purchase for cash instead of on margin

Recalculate your answers for questions (1) and (2) and assume that Ed made the Niagara stock purchase for cash instead of on margin.

Q : Good financial management decision

But for its East Valley operations, the transportation program had a loss. Based upon the financial report, the program manager decides to recommend discontinuing transportation services in the East Valley service area. Is this a good financial ma

Q : How do variable costs and fixed costs differ

Question 1: How do variable costs and fixed costs differ? Give an example of each. Question 2: Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to ch

Q : Internal and external users of financial data

Problem 1) Please provide to me examples of internal and external users of financial data? Problem 2) What are the three types of business activities you will see on a financial report?

1935704

Questions
Asked

3,689

Active Tutors

1454686

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculating the value of a stock

Reference No:- TGS01451374

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Assess the profit potential using marginal analysis

Q : Identify and define the key industry success factors

Q : Bank loan request

Q : Amount of raw materials transferred to work in process

Q : Calculating the value of a stock

Q : Niagara stock purchase for cash instead of on margin

Q : Good financial management decision

Q : How do variable costs and fixed costs differ

Q : Internal and external users of financial data

How do you define being an adult

Examine historical literature to the most current period

Identify one antecedent, one behaviour, and one consequence

Problem regarding the america youth and social media

Identify a specific theory of cognitive or moral development

Discussion about the nature versus nurture

Review a social, behavioral, or cultural factor

Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculating the value of a stock

Reference No:- TGS01451374

Recent Questions Asked Finance Basics

Q : Assess the profit potential using marginal analysis

Q : Identify and define the key industry success factors

Q : Bank loan request

Q : Amount of raw materials transferred to work in process

Q : Calculating the value of a stock

Q : Niagara stock purchase for cash instead of on margin

Q : Good financial management decision

Q : How do variable costs and fixed costs differ

Q : Internal and external users of financial data

Asked Questions