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10.(15 pts ) An analyst has gathered the following market forecasts and information to assist in her examination of the value of TCU Inc.: TCU's
10.(15 pts ) An analyst has gathered the following market forecasts and information to assist in her examination of the value of TCU Inc.: TCU's cost of capital: 10 percent Last year's earnings: $2.25 / share Current earnings: $0.10 / share Current stock price: $35.86 / share Current Debt to Equity ratio: 2 Current dividend payout ratio: 90 percent Current profit margin: 8.4 percent Next year's forecasted earnings: $1.00 / share Forecasted earnings in year 2:$1.50 / share Forecasted earnings in year 3: $2.00 / share Market consensus of the stock price target in 4 years: $47.70 / share As her new intern, she has asked you to investigate and provide the growth rates over time that the market is expecting for the firm. 10.(15 pts ) An analyst has gathered the following market forecasts and information to assist in her examination of the value of TCU Inc.: TCU's cost of capital: 10 percent Last year's earnings: $2.25 / share Current earnings: $0.10 / share Current stock price: $35.86 / share Current Debt to Equity ratio: 2 Current dividend payout ratio: 90 percent Current profit margin: 8.4 percent Next year's forecasted earnings: $1.00 / share Forecasted earnings in year 2:$1.50 / share Forecasted earnings in year 3: $2.00 / share Market consensus of the stock price target in 4 years: $47.70 / share As her new intern, she has asked you to investigate and provide the growth rates over time that the market is expecting for the firm
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