Essay heading: 3 Risk and Capital
Essay specific features
September 7, 2004
No of pages / words:
4 / 1047
Rating of current essay:
Use the CGM to find the current stock price for IBM. We will call this the theoretical price or Po.
The formula to calculate Po = D1 / (ks-g)
Here Po stands for the current price of the common stock. D1 represents the dollar amount of the dividend expected one period from now. ks represents the required rate of return per period on the common stock investment...
displayed 300 characters
Order custom writing paper now!
- Your research paper is written
by certified writers
- Your requirements and targets are
- You are able to control the progress
of your writing assignment
- You get a chance to become an
Get a price guote
ks represents the required rate of return per period on the common stock investment. g is equal to the expected constant growth rate per period of the company's common stock dividends. Utilizing the numbers we have already accumulated we can then find our theoretical price as follows
D1 = 0.80 (1+0...
displayed next 300 characters
General issues of this essay:
4 pages, 1047 words
2 pages, 544 words
2 pages, 360 words
2 pages, 538 words
3 pages, 630 words
4 pages, 943 words