When Obama is kicked out of cabinet!
The expected spot rate can be estimated by observing the relevant forward rate. E.g. expected spot rate in 90-days can be estimated by observing the 90-day forward rate.
An increase in a firm's expected growth rate would normally cause its required rate of return to
Jaws ration = Income Growth Rate - Expected Growth Rate
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
The forward rate is the agreed-upon rate for a future transaction that is set today, while the future rate is the expected rate for a future transaction that is not yet agreed upon.
common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
super normal growth rate is that growth rate which is not constant growth rate. it is flexible growth rate. it means some years or period growth rate is higher than other period. when it is gone constant growth rate certain period and than changed the growth rate, it is called super normal growth rate. some example, we can take here. company x has expected dividend per share is Rs 10. its growth rate is 5 % per year, for next 3 years. and than its growth rate should be changed 10 %. it is the example of super normal growth rate. here, first 3 years has normal growth rate is constant 5% and than it is change by increasing to 10%. here super normal growth rate is start from end of year 3.
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
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possibly increase, possibly decrease, or possibly remain unchanged
Forward exchange rate is the agreed upon exchange rate to be used in a forward trade.