The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year. Introduction: In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The Duo Growth Company just paid a dividend of $1 per share. The dividend is expected to grow at a rate of 25% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 20% per year.a. What is your estimate of the intrinsic value of a share of the stock?b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield?c. What do you expect its price to be one year from now?d. Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate?

The FI Corporation's dividends per share are expected to grow indefinitely by 6% per year. a. If this year's year-end dividend is $8.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Current stock price b. If the expected earnings per share are $16.00, what is the implied value of the ROE on future investment opportunities? (Round your answer to 2 decimal places.) Value of ROE c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? (Round your answer to 2 decimal places.) Amount % per share

Franklin Corporation is expected to pay a dividend of $1.40 per share at the end of the year. The stock sells for $33.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

Answer 2

Question

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 6

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 7

Chapter 18, Problem 17PS

A

Summary Introduction

To calculate: The estimation of the intrinsic value of share of stock is to be determined when market capitalization rate is 20% per year.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 8

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 9

B

Summary Introduction

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 10

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 11

C

Summary Introduction

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 12

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 13

D

Summary Introduction

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 18 - Prob. 1PS Ch. 18 - Prob. 2PS Ch. 18 - Prob. 3PS Ch. 18 - Prob. 4PS Ch. 18 - Prob. 5PS Ch. 18 - Prob. 6PS Ch. 18 - Prob. 7PS Ch. 18 - Prob. 8PS Ch. 18 - Prob. 9PS Ch. 18 - Prob. 10PS

Solution Summary: The author explains the estimation of the intrinsic value of share of stock, which is determined by using fundamental and technical analysis.

Concept explainers

Videos

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Want to see the full answer?

Chapter 18 Solutions

Solution Summary: The author explains the estimation of the intrinsic value of share of stock, which is determined by using fundamental and technical analysis.

Concept explainers

Videos

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value. Introduction: In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: The expected price to be one year from now is to be determined. Introduction: In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate. Introduction: In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

Want to see the full answer?

Chapter 18 Solutions

To calculate: The expected dividend yield when market price of share is equal to the intrinsic value.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: The expected price to be one year from now is to be determined.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.

To calculate: when the capital gain is consistent with dividend yield and the capitalization market rate.

Introduction:

In a company, intrinsic value is the calculated value. The estimated value is used in fundamental analysis and its cash flow. The amount of profit that exists in a contract.