Question
16.) Sultan Services has 1.5 million shares outstanding. It expects earnings at the end of the year of $ 5.00 million. Sultan pays out 60%
16.) Sultan Services has 1.5 million shares outstanding. It expects earnings at the end of the year of $ 5.00 million. Sultan pays out 60% of its earnings in total - 40% paid out as dividends and 20% used to repurchase shares. If Sultan's earnings are expected to grow by 6% per year, these payout rates do not change, and Sultan's equity cost of capital is 10%, what is Sultan's share price?
17.) What is the yield to maturity of a eight-year, $ 10,000 bond with a 4.5% coupon rate and semiannual coupons if this bond is currently trading for a price of $ 9, 375?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started