What Price Should the Stock Sell For?

Related BrainMass Solutions

• Preferred Stock calculations

  If the discount rate is 12%, at what price should the preferred sell? b. At what price should the stock sell one year from now? c. What is the dividend yield of this stock? d. What is the capital gains yield of this stock? e.

• Return on Preferred Stock

  At what price should the stock sell 1 year from now? c. What is the dividend yield, the capital gains yield, and the expected rate of return of the stock?

• Preferred stock- price, dividend yield, capital gains yield

  At what price should the stock sell one year from now?

• Expected rate of return of the preferred stock

  1. at what price should the preferred sell=Present value of perpetuity = Annuity/discount rate =8/.12 =$66.7 2. At what price should the stock sell 1 year from now? THe price that it will sell is FV=PV(1+i)^n =66.7(1+.12) =$80 3.

• Repurchase of Stock

  The stock should sell for $45 after the tax ex-dividend date. if instead of paying a dividend, management decides to repurchase the stock: 1. What should be the repurchase price?

• What is your expected return on Somner Resources preferred stock?

  What is your expected return? b. If you require an 8 percent return, given the current price, should you sell or buy more stock? a. What is your expected return?

• Calculating WACC

  If the discount rate is 12 percent, at what price should the preferred sell? b. At what price should the stock sell 1 year from now? c.

• Dunn Corporation - Repurchase of stock

  The stock should sell for $50 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock, a. What should be the repurchase price?

• Integrated Potato Chips: What is the expected dividend in each of the next 3 years and if the discount rate for the stock is 12 percent, at what price will the stock sell?

  If the discount rate for the stock is 12 percent, at what price will the stock sell? c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to hold it for 3 years, what payments will you recieve?