Using information below, calculate value of one share of company X:       2021 2022 2023 2024 EPS growth rate (%) 15 12 10 6 Dividend per share (% of EPS) 20 30 40 50 The company has net profit after tax of $12.32 million and 4 million shares outstanding in 2020. The value of the company (that is the terminal value) at the end of 2024 is expected to be 6 times of earnings of 2024. The required return on equity is 12 percent

Q: On January 1, 2021, an ordinary share of CAC Company is selling for P200. The 2021 dividend is…

A: The market price of a share is the one at which a seller is ready to sell and a buyer is ready to…

Q: A firm has had the indicated earnings per share over the last three years.                    YEAR…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts…

A: Given details are as follows: Expected dividend next year (D1) = $2.80 Growth rate (g) = 6.50% =…

Q: Coca Cola (Company) paid an annual dividend of $1.64 per share and generated earnings per share of…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: At the end of the year 2020 Brown Bear Corporation paid dividends $3.24 per share. The company…

A: Here, Dividend Paid is $3.24 per share Growth Rate in dividend are as follows: 2021- 15% 2022- 15%…

Q: In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax rate is 40%. The net…

A: Market value of firm depends upon cash generated by firm and overall cost. WACC is the discounting…

Q: Dividends for Sepia Ltd are expected to be $0.50 next year. The company retains 25% of its earnings…

A: Expected dividend = $0.50 Retention Ratio = 25%  Rate of return on investment = 15%  Rate of return…

Q: Procter and Gamble​ (PG) paid an annual dividend of $2.89 in 2018. You expect PG to increase its…

A: Value per share = Sum of Present Value of Dividends + Present Value of Stock Sale Price

Q: 3. Residual Earnings Evaluation: The required return is 9%. The growth rate after 2019 into the…

A: Residual Income valuation model is front loaded model because its formula include the value for…

Q: The following table shows the expected dividend payments and required rate of return of Globe Corp.…

A: A share is a part of a company's stock issued by it to raise equity capital funds for a long-term…

Q: 4)Johnson and Johnson had a return on equity in 2020 of 31.4%and paid out 36% of it earning as…

A: Note: This post has two distinct questions. The question posted first, Q4, has been answered below.

Q: Problem . Valuation of equity X Company paid dividends of 2.12 in 2022. The dividends are…

A: Current dividend (D0) = 2.12 Growth rate (g) = 5% Cost of equity (r) = 9.40%

Q: Assume that share price of Oman Petro products is rials at the end of 2019. We atso that…

A: Dividend Expected = Earnings per share * payout Ratio payout ratio = 50% Dividend Expected = 0.100 *…

Q: a. RAK Ceramic is currently paying dividend Tk. 3.70 per share, which is expected to grow at a…

A: The question can be solved using constant dividend growth model

Q: Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 12.5 percent.…

A: Gordon growth model states that the price or value of a stock can be determined if the firm…

Q: Given the information below for Seger Corporation, compute the expected share price at the end of…

A:

Q: Year Dividends (RM) 2020 3,28 2019 3.01 2018 2.76 2017 2.53 2016 2.32 2015 2.13 Cha owns stock in a…

A: The dividend is the return that is paid to the shareholders for the amount invested in the shares of…

Q: DD Plc is expected to declare earnings per share of £1.60 next year. The company historically has…

A: Present value of growth opportunities is calculated using the current market price of stock and…

Q: The following table shows the expected dividend payments and required rate of return of Globex Corp.…

A: Here, Ke is 12% Details of Dividend is as follows: Year 2021 2022 2023 2024 2025…

Q: 3. Mando Inc. next year earnings per share is expected to be $7. Its return on equity is 20%, which…

A: Given, Earnings per share is $7. Return of equity 20% Market required return is 12%

Q: 1. A firm's common stock is currently selling for $50 per share. Its dividend payments and end of…

A: Shares are one of investment option with high return and risk. Share prices fluctuates regularly due…

Q: You are considering purchasing shares in First Dawn Inc. Your research reveals the dividend trend…

A: The stock price which is the maximum price to be paid for share consists of dividends and terminal…

Q: 2022 $2,600,000 She estimates that Grand Central's Re = 12%, and its growth rate g=8%. The company…

A: Residual Income = Operating Income - Book Value × Return Equity

Q: The Bouchard Company's EPS was $6.80 in 2019, up from $3.34 in 2014. The company pays out 40% of its…

A: To calculate growth rate, compounded annual growth rate formula will be used. growth rate or CAGR =…

Q: Procter and Gamble​ (PG) paid an annual dividend of $2.86 in 2018. You expect PG to increase its…

A: Here, Annual dividend in 2018 = $2.86 Growth rate = 8.7% for five years Growth rate = 2.7% after…

Q: Procter and Gamble​ (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its…

A: Stock price refers to the value of the stock that buyers and sellers trade for. The price of a stock…

Q: Blue Co. earns P2,850,000 in 2021 and it has a total outstanding shares of 425,000. On 2022, the…

A: Plowback ratio which is most commonly termed as retention ratio is a type of ratio that depicts and…

Q: Calculate earnings per share (EPS

A: Earnings Per Share (EPS) is the earnings available for each shares to the owners or shareholders…

Q: Current Stock Price = $ 140, ROE =0.28, Dividend payout= 20%, g = 17.7%, Current EPS = $6.60, EPS…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The Bouchard Company's EPS was $5.90 in 2019, up from $3.47 in 2014. The company pays out 50% of its…

A: The dividend is paid to the stockholders as of the return on the investment. It is paid out of the…

Q: A RWB Inc each will pay a dividend of $3.65 next year. The growth rate in dividends for all three…

A: Formula to calculate price of a share. P = D1 / (Ko - g) Where, P = Price D1 = Dividend for next…

Q: The sales revenue of Business Strategy Limited for 2019 is $100 million. The CEO told the sales…

A: Required rate of return is the rate of return expected by the investor on his investment. Using…

Q: In the following table you are given for a company the earnings per share and the dividend per share…

A: Growth rate after 2023 is 8% Required return is 11% To Find: Value of Stock in 2023

Q: Dividends and share buybacks Here are key Önancial data for the company Silverstar Inc.: Earnings…

A: The with-dividend stock price remains $130; the announcement of a larger future dividend doesn’t…

Q: common shareholders of BFG inc. received the following dividends (per share) in recent years: $0.10…

A:

Q: What is the current price of a share of the stock

A: Dividend Discounted Model (DDM) is an financial approach that helps in computing the price of the…

Q: The Bouchard Company’s EPS was $6.50 in 2018, up from$4.42 in 2013. The company pays out 40% of its…

A: Calculation of Growth Rate in Earnings, Expected Dividend and Cost of Retained Earnings: Excel…

Q: A transportation company needs to determine the cost of capital of its shares common. The company's…

A: To Find: Growth rate of dividend

Q: Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is…

A: Expected dividend = $ 1.50 Selling price after 1 year = $ 61 Cost of equity = 9% Current price =…

Q: use the​ dividend-discount model to estimate its value per share at the end of 2018.

A: Dividend discount model refers to a stock valuation model which is used by the company for…

Q: Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 12.5 percent.…

A: Given data; Growth rate= 12.5% Last dividend ( D0) = $0.60 required rate of return = 14.5%

Q: Harvey manufacturing company expected in 2021 to have 18% increase in sales compared to 2020 sales…

A: Retained earnings of a company are those profits earned by the company but not distributed to the…

Q: ou are considering purchasing shares in First Dawn Inc. Your research reveals the dividend trend for…

A: We will use the dividend discount model here.

Q: VI. Solve the following problems. 1. QRS Corporation has declared dividend for January 2019 of P20…

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…

Q: On 2021, BingBong Inc. net income doubled from the 2020 figure. The number of outstanding shares is…

A: The pay-out ratio is the term that represents the percentage of total income that is paid out as a…

Q: if a dividend in 2018 was $1.20 per share and in 2019 dividend was $1.70 per share What is the…

A: Given, dividend in 2018 = $1.20 dividend in 2019 = $1.70

Q: if a dividend in 2018 was $1.11 per share and in 2019 dividend was $1.15 per share What is the…

A: Share holders will normally expect dividends to increase year by year and not to remain constant in…