PS4 Q1

General Importers announced that it will pay a dividend of $2.00 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.00 forever. The required return is 10.00 percent. What is the price of the stock today?

Cambridge Technologies announced on two different occasions that earnings would be less than expected for a particular quarter. It also expressed doubt about the next fiscal year. Following the second announcement, the price declined more than 30 percent, and this was after the price had suffered earlier declines. Should an investor interested in owning the stock react quickly to take advantage of the price drop? Why and why not? Give logic for your answer?

he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings.  What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate             % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings           $                    Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year? (Do not round intermediate…

The newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings.  What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate             % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings           $

The Canning Company has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate of 5% annually into the foreseeable future.  Assume that ks = 11% and D0 = $2.00. What will be the price of the company's stock in three years?

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a nationalexchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted thatthe company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expectedfor the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to ultimately report an increase in earnings as large as predicted unless some drastic action was taken.Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the newyear—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’scontroller to carefully scrutinize all costs that are currently classified as period costs and reclassify as manyas possible as product costs. The company is expected to have…

Our company, Mom and Pop Inc is at the the end of the fiscal year. We observe that in the market our stock is worth 290 EUR today. We authorized payment of 30 EUR dividend for this fiscal year, and it was already paid yesterday.. Sales are up, and we are expecting the company to continue to grow at its historical rate of 1.0% per annum. Our accountants report that the return on equity of our company is 30.0%. 1. What returns are investors expecting for equities with a similar risk profile as ours? 2. Calculate the dividend yield

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm’s income statement and balance sheet. The Company had a 55 percent dividend payout ratio for the last 10 years and does not plan to change this policy. Based on internal forecasts, the company expects the demand for its products to grow at a rate of 27 percent for the next year and has projected the sales growth for 2012 to be 27 percent. Assume that equity accounts and long-term debt do not vary directly with sales, but change when retained earnings change or additional capital is issued. Munson Communications Company Balance Sheet as of June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $1,728,639 Accounts payables $4,666,673 Accounts receivables 3,009,421 Notes payables 2,507,094 Inventories 11,492,993     Total current assets $16,231,054 Total current liabilities $7,173,767         Net fixed assets 22,380,636 Long-term debt 13,345,242…

On​ Friday, August​ 28, 2020, the stock of Tesla Inc. closed at ​$2,217.99 per share. On the following​ Monday, the company split its stock 3​-for-1, and the stock price traded for ​$741.42 per share. Were Tesla shareholders better​ off, worse​ off, or in the same position after the split compared with​ before? What return did they earn from Friday to​ Monday? The price of Tesla immediately after the split is predicted to be ​$(enter your response here) per share. What calculation should I use to figure out the answer?

The Impulse Shopper recently paid an annual dividend of $1.13 per share. The company just announced that it is suspending all dividend payments on its common stock for the next five years. After that, the company expects to pay $.50 a share at the end of each year. At a required return of 18 percent, what is this stock work today? Can the calculator and excel solution be provided?

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm’s income statement and balance sheet. The Company had a 55 percent dividend payout ratio for the last 10 years and does not plan to change this policy. Based on internal forecasts, the company expects the demand for its products to grow at a rate of 21 percent for the next year and has projected the sales growth for 2012 to be 21 percent. Assume that equity accounts and long-term debt do not vary directly with sales, but change when retained earnings change or additional capital is issued. Munson Communications Company Balance Sheet as of June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $1,728,639 Accounts payables $4,666,673 Accounts receivables 3,009,421 Notes payables 2,507,094 Inventories 11,492,993     Total current assets $16,231,054 Total current liabilities $7,173,767         Net fixed assets 22,380,636 Long-term debt 13,345,242…

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm’s income statement and balance sheet. The Company had a 55 percent dividend payout ratio for the last 10 years and does not plan to change this policy. Based on internal forecasts, the company expects the demand for its products to grow at a rate of 21 percent for the next year and has projected the sales growth for 2012 to be 21 percent. Assume that equity accounts and long-term debt do not vary directly with sales, but change when retained earnings change or additional capital is issued. Munson Communications Company Balance Sheet as of June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $1,728,639 Accounts payables $4,666,673 Accounts receivables 3,009,421 Notes payables 2,507,094 Inventories 11,492,993     Total current assets $16,231,054 Total current liabilities $7,173,767         Net fixed assets 22,380,636 Long-term debt 13,345,242…

The Textbook Production Company has been hit hard due to increased competition. The company’s analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that rs = 11 percent and Do = $1.00. What will be the price of the company’s stock three years from now?

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm’s income statement and balance sheet. The Company had a 55 percent dividend payout ratio for the last 10 years and does not plan to change this policy. Based on internal forecasts, the company expects the demand for its products to grow at a rate of 14 percent for the next year and has projected the sales growth for 2012 to be 14 percent. Assume that equity accounts and long-term debt do not vary directly with sales, but change when retained earnings change or additional capital is issued. Munson Communications Company Balance Sheet as of June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $1,728,639 Accounts payables $4,666,673 Accounts receivables 3,009,421 Notes payables 2,507,094 Inventories 11,492,993     Total current assets $16,231,054 Total current liabilities $7,173,767         Net fixed assets 22,380,636 Long-term debt 13,345,242…

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm’s income statement and balance sheet. The Company had a 55 percent dividend payout ratio for the last 10 years and does not plan to change this policy. Based on internal forecasts, the company expects the demand for its products to grow at a rate of 14 percent for the next year and has projected the sales growth for 2012 to be 14 percent. Assume that equity accounts and long-term debt do not vary directly with sales, but change when retained earnings change or additional capital is issued. Munson Communications Company Balance Sheet as of June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $1,728,639 Accounts payables $4,666,673 Accounts receivables 3,009,421 Notes payables 2,507,094 Inventories 11,492,993     Total current assets $16,231,054 Total current liabilities $7,173,767         Net fixed assets 22,380,636 Long-term debt 13,345,242…

The Cristiano Book Production Company has been hit hard due to increased competition. The company’s analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that ke = 11 percent and D0 = $2.00. What will be the price of the company’s stock three years from now?

Investors expect a company to announce a 9 percent decrease in earnings, but instead the company announces a 1 percent decrease.  If the market is semistrong-form efficient, which of the following should happen?   a. The stock’s price rises because the earnings decrease was less than expected.   b. The stock’s price stays the same because earnings announcements have no effect if the market is semistrong-form efficient.   c. The stock’s price decreases slightly because the company had a slight decrease in earnings.

Meadow Dew Corporation currently has an EPS of $3.80, and the benchmark PE for the company is 37. Earnings are expected to grow at 10 percent per year.   a. What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assuming the company pays no dividends, what is the implied return on the company’s stock over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Due to demographics and increasing awareness about the potential dangers of smoking, PuffOff, a manufacturer of 'no-inhale' cigarettes, is experiencing declining sales and earnings. As a result, the company can only afford to pay a dividend next year of $2.15. The company is then expected to reduce its dividends by 11.00% in two years and 7.00% in three years. But from the fourth year onwards, dividends are expected to decline at a constant rate of 4.00% per annum forever. What is the price of PuffOff stock if the required return is 12%? OA) $29.27 B) $9.50 C) $10.68 OD) $12.31 O E) $10.96 Grar G

Meadow Dew Corporation currently has an EPS of $2.30, and the benchmark PE for the company is 22. Earnings are expected to grow at 5 percent per year. a. What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assuming the company pays no dividends, what is the implied return on the company’s stock over the next year?

BBP, Inc., has experienced a recent resurgence in business as it has gained new national identity. Management is forecasting rapid growth over the next 4 years (annual rate of 15%). After that, it is expected that the firm will revert to its historical growth rate of 2% annually. The last dividend paid was $1.50 per share, and the required return is 10%. What is the current price per share, assuming equilibrium?"     29.56     39.56     28.56     27.56

Data on Shick Inc. for last year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365 day year. Do not round yourData on Shick Inc. for last year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Do not round your intermediate calculations. Sales $103, 000 Accounts receivable $16,000 Days Sales Outstanding (DSO) 56.699 Benchmarks' Days Sales Outstanding (DSO) 19.000 a. $9,805 b. $11,471 c. $10, 638 d. $4,529

he table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)     IBM   AMZN January $ 173.24   $ 609.06   February   175.69     619.88   March   187.69     578.30   April   203.79     546.50   May   193.81     516.54   June   207.25     499.18   July   230.50     605.49   August   207.85     538.26   September   219.11     513.48   October   214.23     598.70   November   194.99     594.17   December   174.78     652.50

Jia's Fashions recently paid a R2 annual dividend. The company is projecting that its dividends will grow by 20 percent next year, 12 percent annually for the two years after that, and then at 6 percent annually thereafter. Based on this information, how much should Jia's Fashions common stock sell for today if her required return is 10.5%? Which answer is correct? A. R54.90  B. R60.80 C. R66.60 D. R69.30

Taggart Goods Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Taggart is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,300,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,800,000 shares). If Taggart’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect its stock price to be one year from now? $20.24 per share $23.00 per share $15.18 per share $25.30 per share One year later, Taggart Goods Corp.’s stock is trading at $38.00, and the company reports its common equity value as $31,574,400. What is Taggart Goods Corp.’s market-to-book (M/B) ratio?    Is it possible for a company to have a negative EPS and thus a negative P/E ratio?.