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?
Homework Answers
Add Answer to:
Twitter Inc. has 850 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...
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
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...
P7-25 (similar to) AFW Industries has 184 million shares outstanding and expects earnings at the end...
P7-25 (similar to) AFW Industries has 184 million shares outstanding and expects earnings at the end of this year of $656 million. AFW plans to pay out 64% of its earnings in total, paying 35% as a dividend and using 29% to repurchase shares. If AFW's earnings are expected to grow by 8.2% 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 $...
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...
Question 19 10 points Save Answer Canyon Buff Corp. has $200 million in cash and 100...
Question 19 10 points Save Answer Canyon Buff Corp. has $200 million in cash and 100 million shares outstanding. Analysts expect the firm to have earnings of $400 million this year. Canyon Buff plans to pay out 30% of its earnings in dividends and they expect to use another 20% of their earnings to repurchase shares. If the firm's equity cost of capital is 15%, the weighted average cost of capital is 10%, and the earnings are expected to grow...
Trivoli Inc. is an all-equity firm with 1,000,000 shares outstanding. The company's EBIT is $2,500,000, and...
Trivoli Inc. is an all-equity firm with 1,000,000 shares outstanding. The company's EBIT is $2,500,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its earnings per share (EPS) equals its dividends per share (DPS). The company's tax rate is 25%. The company is considering issuing $3.25 million worth of bonds (at par) and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated...
The Carlton Corporation has $6 million in earnings after taxes and 1 million shares outstanding. The...
The Carlton Corporation has $6 million in earnings after taxes and 1 million shares outstanding. The stock trades at a P/E of 15. The firm has $3 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. If the $3 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to...
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?
Bobs Group, a firm that specializes in the design and manufacturing of aircraft components, has 150...
Bobs Group, a firm that specializes in the design and manufacturing of aircraft components, has 150 million shares outstanding and analysts expect Bobs to have earnings of $450 million this coming year (t=1). Bobs plans to pay out 55% of its earnings in dividends and they expect to use an additional 15% of their earnings to repurchase shares. Bob's equity cost of capital is 11%. Its earnings are expected to grow at a rate of 3% per year and these...
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
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...
P7-25 (similar to) AFW Industries has 184 million shares outstanding and expects earnings at the end of this year of $656 million. AFW plans to pay out 64% of its earnings in total, paying 35% as a dividend and using 29% to repurchase shares. If AFW's earnings are expected to grow by 8.2% 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 $...
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...
Trivoli Inc. is an all-equity firm with 1,000,000 shares outstanding. The company's EBIT is $2,500,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its earnings per share (EPS) equals its dividends per share (DPS). The company's tax rate is 25%. The company is considering issuing $3.25 million worth of bonds (at par) and using the proceeds for a stock repurchase. If issued, the bonds would have an estimated...
Most questions answered within 3 hours.
-
How can having too little or too much of a certain
protein cause problems for an...
asked 1 hour ago -
Assume a muscle has a PCSA = 20 cm2 and Lo = 12 cm. Assume it...
asked 2 hours ago -
What is the yield to maturity of a ten-year, $1,000 bond with a
5.2% coupon rate...
asked 3 hours ago -
A mass m = 5 kg is tied on one end of a rope and is...
asked 3 hours ago -
The Average sales price of single-family houses in Charlotte is
$210,000 with a standard deviation of...
asked 3 hours ago -
Target Costing
Laser Impressions, Inc., manufactures color laser printers.
Model J20 presently sells for $225 and...
asked 3 hours ago -
a bottle cap manufacturer with four machines and six operators
wants to see if variation in...
asked 4 hours ago -
State Farm Insurance studies show that in Colorado, 55% of the
auto insurance claims submitted for...
asked 5 hours ago -
Complete the following reactions which form ethers (A
and B) and cyclic ethers (C-E) as major...
asked 5 hours ago -
in a perfectly elastic collision what is the velocity of ball A
if the original direction...
asked 5 hours ago -
PLEASE ANSWER ALL
1) The pressure of the atmosphere decreases with increasing
altitude in the
Choose...
asked 6 hours ago -
A simple random sample of 25,000 individuals are surveyed in
order to determine the prevalence of...
asked 6 hours ago