Business, 04.07.2020 21:01 Lilleypad07
Company Q's current return on equity (ROE) is 14%. It pays out earnings as cash dividends using a payout ratio of 0.50. Current book value per share is $60. Book value per share will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 11.5% and the payout ratio increases to 0.90. The cost of capital is 11.5%.
a. What are Q's EPS and dividends in years 1, 2, 3, 4, and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. What is Q's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answers: 1
Business, 22.06.2019 10:00, emwemily
Frolic corporation has budgeted sales and production over the next quarter as follows. the company has 4100 units of product on hand at july 1. 10% of the next months sales in units should be on hand at the end of each month. october sales are expected to be 72000 units. budgeted sales for september would be: july august september sales in units 41,500 53,500 ? production in units 45,700 53,800 58,150
Answers: 3
Business, 22.06.2019 15:50, jackievelasquez7881
Singer and mcmann are partners in a business. singer’s original capital was $40,000 and mcmann’s was $60,000. they agree to salaries of $12,000 and $18,000 for singer and mcmann respectively and 10% interest on original capital. if they agree to share remaining profits and losses on a 3: 2 ratio, what will mcmann’s share of the income be if the income for the year was $15,000?
Answers: 1
Business, 23.06.2019 13:10, TheaMusic524
Lindor inc.'s $100 par value preferred stock pays a dividend fixed at 8% of par. to earn 12% on an investment in this stock, you need to purchase the shares at a per share price of
Answers: 3
Company Q's current return on equity (ROE) is 14%. It pays out earnings as cash dividends using a pa...
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