Purchase Solution

Current Stock Price

Not what you're looking for?

Ask Custom Question

Estimating current stock price with beta, risk free rate, and market premium.

Attachments
Purchase this Solution
Solution Summary

The solution provides a detailed explanation for the question being asked. The solution is very easy to follow along and can be understood by anyone with a basic knowledge of finance. Overall, an excellent response. The solution calculates the current stock price of a stock using its beta, risk free rate and market premium. CAPM is also being used to calculate the current stock price.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • BrainMass Expert's Approach to: Stock valuation

    We first find the current price using the dividend discount model Current price = D1/(rs-g) Where D1=0.50 rs = required return = 12% g = growth rate = 7% Current Price = 0.50/(12%-7%) = $10 The growth rate g gives the increase in stock price.

  • Estimating the current and expected stock price

    current and expected price of given stock.

  • Valuation of Preferred Stock - Current and original Value

    14% = $6/ Current Price Solving we get Current Price = $6 / 14% = $42.86 If the yield on the Standard & Poor's Preferred Stock Index declines, how will the price of the preferred stock be affected?

  • Market Value Ratio - Lane Inc

    If Lane's forecast turns out to be right, and its price/earnings (P/E) ratio does not change, what does Lane expect its stock price to be one year from now? Current Price earnings ratio= Current stock price/Current EPS.

  • Preferred Stock Value

    We get 6% = 6/Issue Price Issue Price = 6/.06 = $100 What is the current value of this preferred stock? The current yield is 14%. The dividend amount remains the same at $6. We get 14% = 6/Current Price.

  • Calculating the market price of a stock

    price of stock=Po=D1/(r-g)=$45.65 b) Current market price is lower than estimated price, I would prefer to buy the stock.

  • Analyzing Stock Based on EPS

    What was the observed current stock price (in dollars) when the earnings per share was 30.83 dollars? From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 30.83 dollars?

  • The answer to preferred stock

    We get 6% = 6/Issue Price Issue Price = 6/.06 = $100 2. What is the current value of this preferred stock? The current yield is 14%. The dividend amount remains the same at $6. We get 14% = 6/Current Price.

  • What are the option's market value and the price of stock?

    Exercise value = Current stock price - Strike price 22 = Current stock price - 15 Current stock price = 37 This solution is comprised of a detailed explanation to answer what are the option's market value and the price of the stock.

  • Current price and holding period

    How would that affect the current price of the stock? Explain. The holding period does not make a difference to the current price of a stock.

View More Related Solutions