Homework Answers
Add Answer to:
P7-25 (similar to) AFW Industries has 184 million shares outstanding and expects earnings at the end...
AFW Industries has 214 million shares outstanding and expects earnings at the end of this year...
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...
Valence Electronics has 211 million shares outstanding. It expects earnings at the end of the year...
Valence Electronics has 211 million shares outstanding. It expects earnings at the end of the year of $820 million. Valence pays out 40% of its earnings in total - 15% paid out as dividends and 25% used to repurchase shares. If Valence's earnings are expected to grow by 5% per year, these payout rates do not change, and Valence's equity cost of capital is 8%, what is Valence's share price? A. $41.46 B. $15.55 C. $51.82 D. $7.77
Valence Electronics has 232 million shares outstanding. It expects earnings at the end of the year...
Valence Electronics has 232 million shares outstanding. It expects earnings at the end of the year of $700 million. Valence pays out 40% of its earnings in total - 15% paid out as dividends and 25% used to repurchase shares. If Valence's earnings are expected to grow by 7% per year, these payout rates do not change, and Valence's equity cost of capital is 9%, what is Valence's share price? A. $60.34 B. $18.10 C. $48.27 D. $9.05
Twitter Inc. has 850 million shares outstanding. It expects earnings at the end of the year...
Twitter Inc. has 850 million shares outstanding. It expects earnings at the end of the year to be $1,280 million. The firm's equity cost of capital is 12%. Twitter pays out 20% of its earnings in total: 15% paid out as dividends and 5% used to repurchase shares. If Twitter's earnings are expected to grow at a constant 3% per year, what is Twitter's share price?
KD Industries has 30 million shares outstanding with a market price of $20 per share and...
KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt. KD has had consistently stable earnings, and pays a 21% tax rate. Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares. If KD expects the share price to increase from $20 per share to a new share price on announcement of the transaction and before...
Your company has 20 million shares outstanding, total earnings this year of $50 million, and a...
Your company has 20 million shares outstanding, total earnings this year of $50 million, and a 20% payout ratio. a. If your return on new investment is 11% and you maintain your payout ratio at 20%, what will be next year’s dividend per share? [7] b. Now assume that you reduce your payout ratio so that this year’s payout rate will be 10%, and next year’s payout ratio will also be 10%. At what rate will your dividends grow? Compute...
Maynard Steel plans to pay a dividend of $3.02 this year. The company has an expected...
Maynard Steel plans to pay a dividend of $3.02 this year. The company has an expected earnings growth rate of 3.5% per year and an equity cost of capital of 10.4%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.04 this year and use the remaining $1.98 per share to repurchase shares. If...
Maynard Steel plans to pay a dividend of $3.00 this year. The company has an expected...
Maynard Steel plans to pay a dividend of $3.00 this year. The company has an expected earnings growth rate of 4.0% per year and an equity cost of capital of 10.0%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.00 this year and use the remaining $2.00 per share to repurchase shares. If...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the 25% federal-plus-state tax bracket, has a net income of $3 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 5% per year, 480,000 shares of stock are outstanding, and the current WACC is 13.40%. The company is considering a recapitalization where it will issue $2 million in debt and use the proceeds to...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $4 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 3% per year, 440,000 shares of stock are outstanding, and the current WACC is 12.40%. The company is considering a recapitalization where it will issue $5 million in debt and use the proceeds to...
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...
Valence Electronics has 211 million shares outstanding. It expects earnings at the end of the year of $820 million. Valence pays out 40% of its earnings in total - 15% paid out as dividends and 25% used to repurchase shares. If Valence's earnings are expected to grow by 5% per year, these payout rates do not change, and Valence's equity cost of capital is 8%, what is Valence's share price? A. $41.46 B. $15.55 C. $51.82 D. $7.77
Valence Electronics has 232 million shares outstanding. It expects earnings at the end of the year of $700 million. Valence pays out 40% of its earnings in total - 15% paid out as dividends and 25% used to repurchase shares. If Valence's earnings are expected to grow by 7% per year, these payout rates do not change, and Valence's equity cost of capital is 9%, what is Valence's share price? A. $60.34 B. $18.10 C. $48.27 D. $9.05
Maynard Steel plans to pay a dividend of $3.02 this year. The company has an expected earnings growth rate of 3.5% per year and an equity cost of capital of 10.4%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.04 this year and use the remaining $1.98 per share to repurchase shares. If...
Maynard Steel plans to pay a dividend of $3.00 this year. The company has an expected earnings growth rate of 4.0% per year and an equity cost of capital of 10.0%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.00 this year and use the remaining $2.00 per share to repurchase shares. If...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the 25% federal-plus-state tax bracket, has a net income of $3 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 5% per year, 480,000 shares of stock are outstanding, and the current WACC is 13.40%. The company is considering a recapitalization where it will issue $2 million in debt and use the proceeds to...
Tartan Industries currently has total capital equal to $9 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $4 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 3% per year, 440,000 shares of stock are outstanding, and the current WACC is 12.40%. The company is considering a recapitalization where it will issue $5 million in debt and use the proceeds to...
Most questions answered within 3 hours.
-
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 1 hour ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 2 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 hour ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 2 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 3 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 3 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 3 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 3 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 3 hours ago -
Why are polymers not typically casted into products?
asked 3 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 4 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 3 hours ago