BUS 225 DAYONE LL
BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 18, Problem 16P

a.

Summary Introduction

To calculate: The stock price today of Omni Telecom under Plan A.

Introduction:

Stock Price:

The highest price of a share of a company that an investor is willing to pay is termed as the stock price. It is the current price used for the trading of such shares.

b.

Summary Introduction

To calculate: The stock price today of Omni Telecom under Plan B.

Introduction:

Stock Price:

The highest price of a share of a company that an investor is willing to pay is termed as the stock price. It is the current price used for the trading of such shares.

c.

Summary Introduction

To determine: The plan that gives a higher value.

Introduction:

Stock Price:

The highest price of a share of a company that an investor is willing to pay is termed as the stock price. It is the current price used for the trading of such shares.

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Consider the following security:                       Brous Metalworks         Earnings Per Share, Time = 0 $2.00          Dividend Payout Rate 0.250         Return on Equity 0.150         Market Capitalization Rate 0.125                     Required:           Using the information in the tables above, please calculate the sustainable growth rate, dividends per share, and intrinsic value per share. Then solve for the present value of growth opportunities.             (Use cells A5 to B8 from the given information to complete this question.)                       Brous Metalworks         Sustainable Growth Rate           Dividends per share (Next Year)           Intrinsic Value           No-Growth Value Per Share           Present Value of Growth Opportunities (PVGO)
Answer the multiple-choice question below: 1. A stock price P0=$23, and is expected to pay D1 = $1.242 one year from now and to grow at a constant rate of g=8% in the future.  Suppose this analysis was conducted in January 1, 2002, what is the expected price at the end of 2002 and what is the Capital gains yield? Select one: a. P 12/31/02 = $34.24;         Capital gains Yield 2002 = $4.50% b. P 12/31/02 = $24.84;         Capital gains Yield 2002 = $8.4% c. P 12/31/02 = $21.40;         Capital gains Yield 2002 = $18.4% d. P 12/31/02 = $24.84;         Capital gains Yield 2002 = $8.0%
Blue is currently selling for $26 per share. Its next dividend​ (in one​ year) is forecasted to be   $1. Immediately after the dividend is​ paid, you expect the price to be   $33. a. What is its expected dividend​ yield? b. What is its expected capital gain​ rate? c. What is the equity​ investors' expected​ return?       Question content area bottom Part 1 a. Dividend​ yield: enter your response here​%. ​ (Round to two decimal​ places.)   b. Capital gain​ rate: enter your response here​%.   ​(Round to two decimal​ places.)   c. Expected​ Return: enter your response here​%. ​(Round to two decimal​ places.)
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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY