Halliford Corporation expects to have earnings this coming year of
$ 2.991
per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain
51 %
of its earnings. It will retain
19 %
of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of
27.8 %
per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is
10.3 %,
what price would you estimate for Halliford stock? (Note: Be careful not to round any intermediate steps less than three decimal places.)
The stock price will be
$nothing.
(Round to the nearest cent.)
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ANSWER : 73.06
Halliford Corporation expects to have earnings this coming year of $ 2.991 per share. Halliford plans...
Halliford Corporation expects to have earnings this coming year of $ 3.183 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 49 % of its earnings. It will retain 20 % of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 25.5 % per year. Any earnings that are not retained will...
Halliford Corporation expects to have earnings this coming year of $3.07 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 51% of its earnings. It will then retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 20.86% per year. Any earnings that are not retained will be paid out as...
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halliford corporation expects to have earnings this coming year of $3.29 per share. halliford plans to retain all of its earnings for the next two years. for the subsequent two years, the firm will retain 52% of its earnings. it will then retain20 of its earnings from that point onward. each year, retained earnings will be invested in new projects with an expected return of 21.39 % per year. any earnings that are not retained will be paid out as...
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Halliford Corporation expects to have earnings this coming year of $2.619 per share. Halliford plans to retain all of its earings for the next two years. Then, for the subsequent two years, the firm will retain 52% of its earnings. It will retain 17% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 24.5% per year. Any earnings that are not retained will be paid out as...
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Halliford Corporation expects to have earnings this coming year of $ 2.773$2.773 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 54 %54% of its earnings. It will retain 21 %21% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 21.3 %21.3% per year. Any earnings that are not retained will...
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