L 3 5. For each of the following scenarios determine the value as of the beginning of 2012 of the continuingdividend:Scenario AScenario BScenario C(Amounts in thousands)ANS:Forecast of Long-Run Cost ofGrowth CapitalDividend inyear 2016ForecastScenario A$28Scenario BScenario C(Amounts in thousands)Forecast ofDividend inyear 2016$54$123 5% 14%$28$544%$1239% 15%11%Continuing valueLong-Run Cost of Dividend Perpetuity Beginning BeginningGrowthCapitalin 2017withof 2017of 2012Forecastgrowth4%9%5%11%$29.1215% $58.8614% $129.1514.286$416.0016.667 $981.0011.111 $1,435.00$246.88$487.73$745.29

Forecast of dividend in 2016 Long-Run Growth Forecast Cost of Capital Scenario A 28 4% 11%…

For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Scenario A Scenario B Scenario C (Amounts in thousands) ANS: Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast Scenario A Scenario B $28 $54 $123 Forecast of Dividend in year 2016 Scenario C (Amounts in thousands) $28 $54 $123 4% 9% 5% 4% Long-Run Cost of Growth Forecast Capital 9% 11% 5% 15% 14% 11% 15% 14% Continuing value Dividend Perpetuity Beginning Beginning in 2017 with of 2017 of 2012 growth $29.12 14.286 $416.00 $58.86 16.667 $981.00 $129.15 11.111 $1.435.00 $246.88 $487.73 $745.29

For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Scenario A Scenario B Scenario C (Amounts in thousands) ANS: Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast Scenario A Scenario B $28 $54 $123 Forecast of Dividend in year 2016 Scenario C (Amounts in thousands) $28 $54 $123 4% 9% 5% 4% Long-Run Cost of Growth Forecast Capital 9% 11% 5% 15% 14% 11% 15% 14% Continuing value Dividend Perpetuity Beginning Beginning in 2017 with of 2017 of 2012 growth $29.12 14.286 $416.00 $58.86 16.667 $981.00 $129.15 11.111 $1.435.00 $246.88 $487.73 $745.29

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 2P: AFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end...

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