A. Sustainable growth rate (g)= { (eps-dps)/eps }* { net income/equity}
for 2018, g= { (7.74-4.48)/7.74 } * { 14860/154,554 }
=4.04%
B. Compounded Annual Growth Rate (CAGR)= {(future value/ present value)1/n} -1
hence CAGR of dps from 2004-2018= [4.48/1.53]1/14-1 = 1.0798-1= 7.98%
C. Share price= {DPS (1+g)} /(discount rate- growth rate)
hence share price of CVX = {4.48 (1+0.05)} / (10%-5%) = 94.08
need answers A,B,C 3. You are given the following information for Chevron Corp. (Ticker: CVX): EPS...
answer A,B, and C please 3. You are given the following information for Chevron Corp. (Ticker: CVX): EPS 6.28 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales 150,865 193,641 204,892 214,091 264,958 167,402 198,198 244,371 230,590 220,156 200,494 129,925 110,215 134,674 158,902 Net income 13,328 14,099 17,138 18,688 23,931 10,483 19,024 26,895 26,179 21,423 19,241 4,587 -431 9,269 14,860 6.54 7.80 8.77 11.67 5.24 9.48 13.44 13.32 11.09 10.14 2.45 -0.27...