Purchase Solution

Common Stock: Calculating Price per Share

Not what you're looking for?

Ask Custom Question

An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16%?

Purchase this Solution
Solution Preview

The answer is in the attached Excel file as well.

An issue of common stock has just paid a dividend of $3.75.  Its growth rate is 8%. What is its price if the ...

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • Calculating conversion or stock value of convertible bond.

    The common stock is currently selling for $42 per share. Conversion ratio=12.5 Market price of stock=$42 Conversion value=conversion ratio*market price=12.5*42=$525 c.

  • WACC, CAPM, Holding period returns

    566899 Corporate Finance Problems/ Calculating Returns 1. Calculating Returns. Suppose a stock had an initial price of $84 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $96.

  • Calculating annual dividends, total dividends and common stock

    How many shares of common stock will you own after the stock split? Shares of common stock = b. What will probably happen to the market price per share of the stock? The market price per share should remain same.

  • Sources of Capital: Owner's equity; EPS

    The company also had granted stock options to employees for 200,000 shares of common stock at $10 per share. The average price of the company's common stock during the fiscal year was @20 per share. 1.

  • Calculating ROE and P/E ratio

    B) Rutland Corp's stock price at the end of last year was $30.25 and its earnings per share for the year were $2.45. What was its P/E ratio?

  • Calculating WACC

    Here are data on two stocks, both of which have discount rates of 15%: Stock A Stock B Return on equity 15% 10% Earnings per share $2.00 $1.50 Dividends per share $1.00 $1.00 Stock A Stock B a.

  • Stock options

    77813 Stock options Stock options exercisable at $50 per share to obtain 24,000 shares of common stock were outstanding dw period when the average market price of the common stock was $60 and the ending market price was $55.

  • Conversion Value / WACC/ Terminal Value

    The dividend on the preferred stock is $.50 per share. If the firm's common stock is currently trading at $9.75, what is the conversion value of a share of the preferred stock?

  • cost of stock/DCF

    410958 cost of stock/DCF 1) xyz stock currently trades at $45.50 per share. At the end of year, xyz is expected to pay annual dividend of $3.65 per share and the firm's dividend is expected to grow at a constant rate of 4% per year.

View More Related Solutions