Question
QUESTION-7 Youve collected the following information from your favorite financial website. 52-Week Price Stock (Dividend) Dividend Yield % PE Ratio Close Price Net Change Hi
QUESTION-7 Youve collected the following information from your favorite financial website.
52-Week Price | Stock (Dividend) | Dividend Yield % | PE Ratio | Close Price | Net Change | |
---|---|---|---|---|---|---|
Hi | Lo | |||||
77.40 | 10.43 | Acevedo .36 | 2.6 | 6 | 13.90 | .24 |
55.81 | 33.42 | Georgette, Incorporated 1.54 | 3.8 | 10 | 40.43 | .01 |
131.01 | 69.90 | YBM 2.40 | 2.7 | 10 | 89.05 | 3.07 |
50.24 | 13.95 | Manta Energy .80 | 5.2 | 6 | 15.43 | .26 |
35.00 | 20.74 | Winter Sports .32 | 1.5 | 28 | ?? | .18 |
According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 19.5 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5 percent, indefinitely. Assume investors require a return of 14 percent on YBM stock. According to the dividend growth model, what should the stock price be today?
1. Mendez Company has identified an investment project with the following cash flows.
Year | Cash Flow |
---|---|
1 | $ 1,030 |
2 | 850 |
3 | 1,460 |
4 | 1,820 |
A)If the discount rate is 10 percent, what is the present value of these cash flows?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
B)What is the present value at 18 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
C)What is the present value at 24 percent?
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