Anyone know how to digit out the current stock price near this given information?
Last dividend was $1.00. Dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. The required return is 12%. What is the current stock price? Any philosophy how I should begin to numeral this out?Answers: You have 2 parts on this... 1) the first 2 years of 15% and 2)then 10% forever. You hold to discount the first 2 years dividends to today, to get the pro for that time period.
Starting at year 2...The formula for a stock at a constant growth is: D x [(1+g)/(k-g)]
D = Last dividend payout(remember that you're looking for the end dividend payout at year 2 and not today)
g = growth rate
k = discount rate
Make sure to adjust the 2 parts that you are going to add together to today's value(not the attraction it will be 2 years from now)
The required rate of return for the investor is 12%. Assuming that the investor is getting that return today, it has to come from dividends. You are not given prior stock prices, or growth rates, so you enjoy to assume this is the only return for the current stock, no growth. So you divide the dividend by the required rate of return, and you take $1 / 12% = $8.33
Won't the stock flea market manipulators formulate big bucks while the souk up and down if the feed lowers interest
First they sell stock to a put horizontal options strike price that they predetermined/prebought up to that time the announcement and collect the put money, then they buy stock up to an nickname level option strike price that they predetermined/prebought before the announcement, after they do another put strategy. So they make money at lowest 3 times off the situation.If you are an average small potatoes trade, you hold to try and figure out, minus warning as to when the actual buys or sell take place. It is adjectives bouncing up and down that makes these big guys money and they know when to leverage their predetermined bounce points!
Answers: The Fed is surrounded by business to (1) create bubbles, (2) serve the interest of these stock market manipulators. They are a private entity and would attention to detail less around the average American.
the fed cut wdlnt really affect the manipulators bcoz they enjoy already got their profits ...as their investment is sooo huge tht they hold the market for a ride.. their buying and selling if truth be told affect the market to a larrrrrrrrrge extend.
the merely thing tht can be done here is to allow these biggies to invest within other public sector ... and restricted areas... so tht the impact on the stock market is not as much as it is now~
What company is correct within the stock bazaar right presently?
and will most likely still be going strong within the next ten weeks?Answers: Right presently, the S&P 500 is looking to open 4.7% lower tomorrow, according to the March futures. Capitulation approaching this could lead to some correct long-term buying opportunities within companies that have be beaten down over olden times 6-12 months. I wouldn't suggest trying to get into this marketplace right now for short-term trading, as it is bearing too volatile, and the odds are greatly stacked against you. Your best bet would be to invest your money contained by a CD at your dune for a few months until there is more clarity as to the direction of our discount, especially if you lack experience. In the penny-pinching time, try researching some companies in overcome down sectors similar to retail and consumer discretionary, industrial, oil services and mining that own good long-term potential, as these will be the fastest and strongest to get better. When you do venture into the flea market, do so by dollar-cost averaging, in command to capture a preferable cost principle while the markets stabilize. I hope this help.
Best of luck!
Brendan Prewitt
President, New York Capital Investment Group LLC
If your time horizon is ten WEEKS, I think the stock open market is not the place to be investing. Over long periods of time, stocks enjoy historically provided the highest returns, but over short period of time like 10 weeks, they could be passageway up or way down.
If this is unadulterated money and you need it within 10 weeks, I would definitely not buy stocks. If this is for some liberal of game that doesn't involve tangible money, then it might be worth trying one of the severely beaten-down financial stocks similar to Citigroup (C), Bank of America (BAC), Wachovia (WB), etc. They've dropped way down and are probably going to drop abundantly more tomorrow (Jan. 22), but some day, possibly inside the next ten weeks, investors will suddenly not be so exceptionally pessimistic as they are right in a minute and will start seeing how cheap these stocks are and then the stocks will probably start rising almost as speedily as they've fallen just this minute.