Homework Answers
| Current stock price (P0) | D1÷(r-g) | |
| Here, | ||
| Expected dividend (D1) | $ 2.53 | =4.21*(1-40%) |
| Required return ( r) | 9% | |
| Growth rate (g) | 3.00% | |
| Current stock price (P0) | $ 42.10 | |
| 2.53/(9%-3%) |
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Laurel Enterpnses expects earnings next year of S4.21 per share and has a 40% retention rate,...
Laurel Enterprises expects earnings next year of $4.29 per share and has a 50 % retention rate
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...
Laurel Enterprises expects eamings next year of $3.73 per share and has a 30% retention rate,...
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...
12. Laurel Enterprises expects earnings next year of $3.51 per share and has a 50% retention...
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 $____....
Laurel Enterprises expects earnings next year of $3.94 per share and has a 30% retention rate,...
Laurel Enterprises expects earnings next year of $3.94 per share and has a 30% 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 2.7 % per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?
Laurel Enterprises expects earnings next year of$3.99 per share and has a 30% retention rate, which...
Laurel Enterprises expects earnings next year of$3.99 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. Its earnings are expected to grow forever at a rate of 3.3% per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?
Laurel Enterprises expects earnings next year of $4.12 per share and has a 30 % retention...
Laurel Enterprises expects earnings next year of $4.12 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. Its earnings are expected to grow forever at a rate of 3.3 % per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?
CH7 1. Laurel Enterprises expects earnings next year of $3.84 per share and has a 50%...
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...
DFB, Inc. expects earnings next year of $ 4.34 per share, and it plans to pay...
DFB, Inc. expects earnings next year of $ 4.34 per share, and it plans to pay a $ 2.38 dividend to shareholders (assume that is one year from now). DFB will retain $ 1.96 per share of its earnings to reinvest in new projects that have an expected return of 15.9 % per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of...
DFB, Inc. expects earnings next year of $5.05 per share, and it plans to pay a...
DFB, Inc. expects earnings next year of $5.05 per share, and it plans to pay a $3.19 dividend to shareholders (assume that is one year from now). DFB will retain $1.86 per share of its earnings to reinvest in new projects that have an expected return of 14.2% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. Assume next...
DFB, Inc. expects earnings next year of $5.01 per share, and it plans to pay a...
DFB, Inc. expects earnings next year of $5.01 per share, and it plans to pay a $3.42 dividend to shareholders (assume that is one year from now). DFB will retain $1.59 per share of its earnings to reinvest in new projects that have an expected return of 15.5% per year. Suppose DFB wil maintain the same idend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. Assume next...
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...
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...
DFB, Inc. expects earnings next year of $5.05 per share, and it plans to pay a $3.19 dividend to shareholders (assume that is one year from now). DFB will retain $1.86 per share of its earnings to reinvest in new projects that have an expected return of 14.2% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. Assume next...
DFB, Inc. expects earnings next year of $5.01 per share, and it plans to pay a $3.42 dividend to shareholders (assume that is one year from now). DFB will retain $1.59 per share of its earnings to reinvest in new projects that have an expected return of 15.5% per year. Suppose DFB wil maintain the same idend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. Assume next...
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