value of the enterprise = (amount planned to be spent on dividends and repurchases forever) / cost of capital
=> $9.4 million / 0.125
=>$75.2 milllion.
price per share = $75.2 million / 4.8 million shares
=>$15.67. per share.
Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7...
Zoom Enterprises expects that one year from now it will pay a total dividend of $5.4 million and repurchase $5.4 million worth of shares. It plans to spend $10.8 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.9% and it has 4.5 million shares outstanding, what is its share price today? The price per share is $U (Round...
Zoom Enterprises expects that one year from now it will pay a total dividend of $5.4 million and repurchase $5.4 million worth of shares. It plans to spend $10.8 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 12.8% and it has 4.6 million shares outstanding, what is its share price today? The price per share is $. (Round...
CH7 1. Laurel Enterprises expects earnings next year of $3.84 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 1 1%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year If its next dividend is due in one year, what do you estimate the firm's current stock price to be? 2, Laurel Enterprises expects earnings...
Tolo Co. plans the following repurchases: $9.6 million in one year, nothing in two years, and $19.9 million in three years. After that, it will stop repurchasing and will issue dividends totaling $25 million in four years. The total paid in dividends is expected to increase by 2.6% per year thereafter. If Tolo has 2.4 million shares outstanding and an equity cost of capital of 10.7%, what is its price per share today? The stock price will be $ ....
Question Help Tolo Co. plans the following repurchases: $10.4 million in one year, nothing in two years, and $20.3 milion in three years. After that it will stop repurchasing and will issue dividends totaling $24 million in four years. The total paid in dividends is expected to increase by 2.5% per year thereafter. If Tolo has 1.5 million shares outstanding and an equity cost of capital of 11.2%, what is its price per share today? The stock price will be...
AFW Industries has 214 million shares outstanding and expects earnings at the end of this year of $719 million. AFW plans to pay out 56% of its earnings in total, paying 31% as a dividend and using 25% to repurchase shares. If AFW's earnings are expected to grow by 8.3% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 12.3%. The price per share will be $ . (Round to...
Tolo Co plans the following repurchases: $9.7 million in one year, nothing in two years, and $20.3 million in three years. After that, it will stop repurchasing and will issue dvidends totaling S24.9 millon in four years. The total paid in dividends is expected to increase by 3.1% per year thereafter. If Tolo has 23 milon shares outstanding and an equity cost of capital of 1 1.5%, what is its price per share today? The stock price will be (Round...
Laurel Enterprises expects eamings next year of $3.73 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment. If ts earnings are expected to grow forever at a rate of 3% per year, what do you estimate the firm's current stock price to be? (Hint its next dividend is due in one year.) The current stock price will be$. (Round...
Laurel Enterprises expects earnings next year of $4.29 per share and has a 50 % retention rate, which it plans to keep constant. Its equity cost of capital is 9 %, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 4.5 % per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be? The current stock price will be...
12. Laurel Enterprises expects earnings next year of $3.51 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 4.5% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be? The current stock price will be $____....