You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: What would be the stock price of the dividends were expected to have a zero growth?

You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: What would be the stock price of the dividends were expected to have a zero growth?

Name: You are asked to analyze The Haus of Us, a local manufacturer of house
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Description: You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%.Requi

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: Suppose the company is expected to experience zero growth during the first 2 years, then a variable growth of 15% on the succeeding 3 years and to resume its steady growth of 8% to infinity. What is the value of the stock?
You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: Now assume that the stock is currently selling at P30.50 per share. What is the expected rate of return on the stock?
You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: What is the firm's current stock price if constant growth rate of 8% annually to infinity issued?
You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required: Assume that the company is expected to experience a variable growth of 30% for the first year; 20% for the succeeding 2 years; 10% for the next 2 years; then to return to its growth rate of 8% to infinity. What is the value of the stock under this condition?
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