Analysts expect Oscorp Industries to make payouts of $2.28B at the end of this year. Assume...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Analysts expect Oscorp Industries to make payouts of $2.28B at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Oscorp's payouts will grow at a constant rate of 2.0% in perpetuity. Oscorp has 2.33B shares outstanding and its shares are currently trading for $16.31. What required return has the market priced into Oscorp's share price? Analysts expect Oscorp Industries to make payouts of $2.28B at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Oscorp's payouts will grow at a constant rate of 2.0% in perpetuity. Oscorp has 2.33B shares outstanding and its shares are currently trading for $16.31. What required return has the market priced into Oscorp's share price?
Expert Answer:
Answer rating: 100% (QA)
We can use the Constant Growth Dividend Model Gordon Growth Model to find the required return cos... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these finance questions
-
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per...
-
Explain the concept of column-level statistics and histograms in query optimization and cost-based query planning, and how they inform the query optimizer about data distribution, selectivity...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Francine Frost graduated from State University with a degree in accounting five years ago, she was promoted to manager last week by the local CPA firm Ross & Denning, LLP. The firm has two...
-
In each case, show that T6 = 1R4 and so determine T-l. (a) T: R4 R4; T(x, y, z, w) = (-y, x - y, z, -w)
-
Hello! My name is Garrick Williams, and I just saw the terrific website for your organization, Green Living Spaces, which I understand is one of the worlds leading health and wellness companies. I...
-
Your uncle Mannys company has transferred him to your area, and he and his wife, Karen, will be moving within the next two months. Because Mannys work requires fairly frequent moves, he and Karen are...
-
On May 31, the inventory balances of Tog Designs, a manufacturer of high- quality childrens clothing, were as follows: Materials Inventory, $21,360; Work in Process Inventory, $15,112; and Finished...
-
Si desea valuar una empresa que paga constantemente susganancias como dividendos, el modelo ms simple que puede usar esel A) modelo de valor empresarial. B) Mtodo de los comparables. C)modelo d 1...
-
A counter-current gas-absorption column is to be designed to remove CO 2 from an inert gas stream by reaction with an amine solution at 20C. At this temperature, CO 2 reacts with the amine according...
-
candy company had sales of $230,000 and cost of goods sold ov $117,000. What is the gross profit margin (ratio of gross profit to sales)? A. 39% B. 49% C.57% D.70%
-
Read the article "The Inevitable Accident Defence" found at https //otlablog.com/the-inevitable-accident-defence/ and answer the following questions, . Explain the "inevitable accident defence"....
-
3. Design and implement a 7 segment decoder for the segment F(12) 4. Simplify the following Karnaugh maps and draw the simplified circuit. AB 00 01 11 10 CD 00 1 1 1 1 01 0 1 1 1 11 1 1 0 0 10 1 1 1...
-
The function D is defined below. D(x)=-3x + 2x+1 Find D(3).
-
Cullumber Company completes and transfers out 12,720 units and has 2,120 units of ending work in process that are 25% complete as to conversion costs. Materials are entered at the beginning of the...
-
A monopolist produces a good for which both the marginal cost and average total cost are zero. (i) The demand curve in a Market 1 is given by P = 50 - Q per month. Graph this market, and calculate...
-
At the end of 2013, Nectorage announced that they would be expanding their R&D and commercial spending to pursue new market opportunities. Their 2014-2015 income statements are as shown bellow. How...
-
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i) t . Trevor's parents deposit $7800...
-
Zakin Co. recently issued $1,000,000 face value, 10%, 30-year subordinated debentures at 97. The debentures are redeemable at 103 upon demand by the issuer at any date upon 30 days notice 10 years...
-
The Century Company, a diversified manufacturing company, had four separate operating divisions engaged in the manufacture of products in each of the following areas: food products, health aids,...
-
Discuss (a) Return on investment, (b) Risk, (c) Financial flexibility, and (d) Operating capability.
-
The bank statement for G Greene for the month of March 19X6 is: You are to: (a) Write the cash book up to date, and (b) Draw up a bank reconciliation statement as on 31 March 19X6. 19X6 Mar 1 Dr Cr...
-
Following is the cash book (bank columns) of E Flynn for December 19X7: You are required to: (a) Write the cash book up to date to take the necessary items into account, and (6) Draw up a bank...
-
You are required to prepare a sales ledger control account from the following for the month of May: 19X6 May 1 Sales ledger balances 4,936 Totals for May: Sales journal 49,916 Returns inwards journal...
Study smarter with the SolutionInn App