Ewald Company’s current stock price is $36 and its last dividend was $2.40. The required rate of return is 12%. If dividends are expected to grow at a constant rate g in the future, what is Ewald’s stock price 5 years from now?
![]() |
Ewald Company’s current stock price is $36 and its last dividend was $2.40. The required rate of return is 12%. If dividends are expected to grow at a constant rate g in the future, what is Ewald’s stock price 5 years from now?
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and place a value on the company’s stock. Here’s what you found: This year, Oasis paid its shareholders an annual dividend of $3 per share, but because of its high growth rate in earnings, its dividends are expected to grow at the rate of 12% per year for the next four years and then level out at 9% a year. So far, you have learned that the stock has a beta of 1.8, the risk-free rate of return is 6%, and the expected return on the market is 11%. What is the value of this stock as of today?
Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for four years, at the end of year 5 you would receive interest on the investment compounded annually at 8%, and at the end of year 6 you would receive $14,500. If your estimates are correct, what would be the IRR on this investment?
Hook Industries capital structure consists of solely debt and equity. It can issue debt at rd =11% and its common stock currently pays a dividend of $2 per share. The stock’s current price is $24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35% and its WACC is 13.95%. What percentage of the firm’s capital structure consists of debt?
A project has annual cash flows of $7,500 for the next 10 years and then $10,000 each year for the following 10 years. The IRR of this 20 year project is 10.98%. If the firm’s WACC is 9% what is the project’s NPV?
Please refer to this announcement
Quote:
We won't do your homework questions for you.
You were given the assignment for you to learn.
There are plenty of resources on the web for you to research this.
If you come up with your own answer and post it for us to critique that is within reason.
If you have some SPECIFIC questions that you couldn't find or didn't understand, we may help with that.
But this is your assignment, show us you have at least attempted to complete it on your own.
Thank you.
All times are GMT -7. The time now is 11:50 PM. |