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Muji earned $10 million for the fiscal year. The firm also paid out 25 percent of its earning as dividend. This policy remains in foreseeable future. The remaining 75 percent of earnings is retained for further investment. The company has 1.25 million shares of common stock outstanding. The current stock price is $40.00. Based on its recent financial statement, its return on equity is 11 percent and is expected to continue in the future. Compute the required rate of return on the stock. **D1= 2(1+g) or D1 = 2? Why?

Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required rate of return?

Soylent Corp expects to generate earnings over the coming twelve months of $$6.656.65 per share (i.e. at t=11). It has a share price today of $$49.2849.28. The firm has a policy of paying out 34.034.0% of its earnings each year as dividends to shareholders and of reinvesting the remaining 66.066.0% into new projects. Reinvested earnings provide a return on new investment of 15.215.2% per annum. However, due to a disappearing customer base, Soylent Corp will soon announce that the firm will begin paying out 69.069.0% of its earnings as dividends, retaining now 31.031.0% for investment in new projects. The return provided by earnings reinvested in new projects will remain at 15.215.2% per annum for the foreseeable future. a)  What will be the share price after this announcement? Investors are not expecting the firm to change its payout policy. The share price for Soylent Corp after this announcement will be

Countess Corp. is expected to pay an annual dividend of $3.97 on its common stock in one year. The current stock price is $68.04 per share. The company announced that it will increase its dividend by 3.20 percent annually. What is the company's cost of equity?

Ferrell Inc. recently reported net income of $8 million. It has 710,000 shares of common stock, which currently trades at $57 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $13.6 million. Over the next year, it also anticipates issuing an additional 248,500 shares of stock so that 1 year from now it will have 958,500 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

Pimento Inc. estimates that this year’s earnings will be $75 million. There are 12 million shares outstanding at a price of $27.50 per share. Pimento had been following a 100% dividend payout policy until now but would now like to shift to the Residual Dividend policy for this year. Dividends from this year’s earnings are paid next year.    a) What is the EPS and DPS for Pimento under the 100% dividend payout policy?     b) If the planned capital outlay is for $72 million and the target capital structure is 1.5:1, willPimento be able to pay dividends as per the Residual Dividend Policy? If so, what will be the dividend per share? Investors require a 22.72% rate of return. Ignore taxes.    c) IfPimento shifts from a 100% payout policy to the residual dividend policy, what impact will this have on its stock price, assuming the firm earns 22.72% as its ROE? Support your argument through relevant computations. Which argument of the dividend policy decision would you have demonstrated…

Columbus Corp. had $380,000 additions to retained earnings for the year. The firm paid out $210,000 in cash dividends, and it has ending total equity of $6.7 million. The company currently has 200,000 shares of common stock outstanding and the stock currently sells for $90 per share.  What is the PE ratio? Round it to two decimal places.

The Link Resport & Spa Company has 75,000 shares of stock outstanding. The company is expected to have total earnings next year of $500,000. The company plans to reinvest $275,000 in projects earning an (equity) return of 15%, and to return the remainder of its earnings to shareholders in the form of dividends or stock repurchases. The first dividend or repurchse payments will be made exactly one year from today. In all future years, the market expects the company's reinvestment rate and the return on reinvested earnings to remain constant. The required return on equity is 12%. What is the value of the firm today, if it 1.) uses the remaining $225,000 to pay dividends, and will continue this payout policy (as a percent of earnings) in future years? 2) uses 40% of its annual payout to repurchase stock, and uses the remainder to pay divdends (and will continue this policy in future years)? Assume that the firm will use the remaining $225,000 to pay dividends (and will continue this…

Please can I get detailed step by step workings for this question?

Makers Corp. had additions to retained earnings for the year just ended of $285,000. The firm paid out $180,000 in cash dividends, and it has ending total equity of $4.85 million. The company currently has 150,000 shares of common stock outstanding.     If the stock currently sells for $79 per share, what is the market-to-book ratio?

What is the book value per share?   If the stock currently sells for $63 per share, what is the market-to-book ratio?   Makers Corp. had additions to retained earnings for the year just ended of $213,000. The firm paid out $183,000 in cash dividends, and it has ending total equity of $4.88 million. The company currently has 110,000 shares of common stock outstanding.

Botanical Gardens Nursery has 7, 500 shares of stock outstanding at a market price of $18 a share. The earnings per share are $1.23. The firm has total assets of $384, 000 and total liabilities of $ 146,000. Today, the firm is paying a quarterly cash dividend of $.22 a share. What will be the earnings per share after the dividend is paid if the tax rate on dividends is 15 percent?

Ferrell Inc. recently reported net income of $8 million. It has540,000 shares of common stock, which currently trades at $21 a share. Ferrell continuesto expand and anticipates that 1 year from now its net income will be $13.2million. Over the next year, it also anticipates issuing an additional 81,000 shares ofstock so that 1 year from now it will have 621,000 shares of common stock. AssumingFerrell’s price/earnings ratio remains at its current level, what will be its stock price1 year from now?

A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock.  The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share.  The common stock costs $29 per share.  What is the price-to-earnings ratio for the common stock? Enter your response rounded to 1 decimal places.

The newspaper reported last week that SunRise Enterprises earned $34.19 million this year. The report also stated that the firm’s return on equity is 13 percent. The firm retains 85 percent of its earnings.  What will next year's earnings be?

At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60

Blunderbluss Manufacturing's balance sheets report $205 million in total debt, $76 million in short-term investments, and $50 million in preferred stock. Blunderbluss has 10 million shares of common stock outstanding. A financial analyst estimated that Blunderbuss's value of operations is $925 million. What is the analyst's estimate of the intrinsic stock price per share? Round your answer to the nearest cent.

What is the firm's net profit margin? O 16.67% Ⓒ 15.53% O 6.29% O 7.72% Ⓒ 14.98%

The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes $ $ Net income $ - Preferred dividends Net income available to common shareholders $ $ Common dividends Addition to retained earnings What is the firm's DPS for 2005? $3.05 Answer the following questions about Travers & Co.'s Income statement. O $3.13 $2.61 O $1.79 O $2.03 What is the basic EPS? $4.35 $4.68 $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 $4.26 $ 1,450 1,200 50 200 25 175 63 112 O $3.65 O $4.68…

Assume that your company is an all-equity firm with 250,000 shares outstanding. The company's EBIT is $2,500,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its earnings per share are equal to its dividends per share and this is currently $6.00 per share. The company's tax rate is 40 percent, its current cost of stock, Ks, is 8 percent, and its current stock price is $75 per share. Now assume that the company is considering issuing $3.75 million worth of bonds (at par) and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated yield to maturity of 5 percent or interest of $187,500. The risk-free rate in the economy is 4 percent, and the market risk premium is 5 percent. The company's beta is currently 0.8, but its investment bankers estimate that the company's beta would rise to 0.9 if it proceeds with the recapitalization. Assume that the shares are repurchased at the equilibrium price that…