year and its year-end was yesterday. Today, XYZ's share price is P34.33 and there are 100 million shares outstanding. Shareholders require a return of 9% and analysts expect XYZ's payouts to grow in perpetuity at an annual rate of 3%. What are next year

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
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XYZ Shoes Inc pays dividends annually and has an active share repurchase program. XYZ makes all of its payouts at the end of each year and its year-end was yesterday. Today, XYZ's share price is P34.33 and there are 100 million shares outstanding. Shareholders require a return of 9% and analysts expect XYZ's payouts to grow in perpetuity at an annual rate of 3%. What are next year's total payouts?

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