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Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
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Use the following information to answer Questions 14 - 17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 $ 2,000 $50,000 $20,000 Net income Dividends Total assets-12/31/05 Total liabilities-1231 o5 Number of shares outstanding Cost of equity 1,000 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. Alter 2006, residual earnings are expected tow earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? Oa. 533.60 Ob.S33.27 OC 532.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? Oa. 542.18 O b. $40.00 OG $48 20 O d.$44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa 133 Ob.141 Oc147
Transcribed Image Text:Use the following information to answer Questions 14 - 17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 $ 2,000 $50,000 $20,000 Net income Dividends Total assets-12/31/05 Total liabilities-1231 o5 Number of shares outstanding Cost of equity 1,000 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. Alter 2006, residual earnings are expected tow earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? Oa. 533.60 Ob.S33.27 OC 532.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? Oa. 542.18 O b. $40.00 OG $48 20 O d.$44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa 133 Ob.141 Oc147
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