The current price of stock corp stock is $26.50 per share. Earnings next year should be $2 per share and it should pay a $1 dividend. The P/E multiple is 15 times an average. What price would you expect for future stock _______
Calculating required rate of return, present value, stock price. ... 3. Suppose the firm's expected growth rate is 5% now, what is the price of the stock? ...
... Total value of firm after the exercise of stock option= $18,000 =$13,000. + $5,000. ... Total value of firm after the exercise of stock option= $15,000 =$10,000. ...
Stock Values and Growth Opportunities. ... This solution explains how to value a stock and how to value growth opportunities. Calculations and answers are provided. ...
... a. What will be Levine's stock value if the previous dividend was D0 = $2 and if investors expect dividend to grow at a constant compound annual rate of (1) -5 ...
... The dividend will be $0.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown on the following ...
... Price X= Strike Price Thus a call option is more valuable (more intrinsic value) when the Stock Price increases and decreases when the strike price increases. ...
...Value of stock with zero growth= Dividend / required return = $2.40/12%= $20.00. ... Value of stock with zero growth= Dividend / required return = $2.40/20%= $12.00. ...
