subject
Business, 30.03.2020 22:46 chancho3703

You are considering buying shares of stock in the Steel Mill. The forecast for the firm is steady growth over the next decade. The firm just paid its annual dividend of $1.42 per share and has plans to increase that amount by 4 percent annually indefinitely. You require a 12.5 percent return on this type of security. What is your estimate of the value of this stock ten years from now?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 03:30
Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.
Answers: 1
question
Business, 22.06.2019 13:10
Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .
Answers: 1
question
Business, 23.06.2019 00:30
Emerson has an associate degree. based on the bar chart below,how will his employment opportunities change from 2008 to 2018
Answers: 2
question
Business, 23.06.2019 03:00
What are the uses of national income data
Answers: 1
You know the right answer?
You are considering buying shares of stock in the Steel Mill. The forecast for the firm is steady gr...
Questions
question
Chemistry, 24.01.2022 04:00
question
Mathematics, 24.01.2022 04:00
question
Mathematics, 24.01.2022 04:00
question
Computers and Technology, 24.01.2022 04:00
Questions on the website: 13722361