Accountants-R-Us billed clients for 2,000 hours of work for the year ending today, 8/12/2020, at $120.00/hour. Other information for the year: Operating Costs $100,000.00 Interest
Accountants-R-Us billed clients for 2,000 hours of work for the year ending today, 8/12/2020, at $120.00/hour. Other information for the year: Operating Costs $100,000.00 Interest Payment 5% (on $60,000 Debt) Profits Tax Rate 25% Dividend Payout Ratio 60% Owners’ Equity throughout the year was $500,000. What is the price per share if, instead, investors believe the company will pay that dividend for the next three years only and at the end of the third year, the company returns the book value per share to each shareholder? For this, use a discount rate of 15%.
Step by Step Solution
3.51 Rating (175 Votes )
There are 3 Steps involved in it
Step: 1
Particulars Computation Amount Revenue 2000hours120 240000 Operatin...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