Assume a Company X's stock price today and cost of equity is consistent with the dividend discount model for constant growth HINT Cost of Equity Dividend Yield Capital Gain Yield Use the information in the table below to answer problems 16 17 Any missing information will need to be solved for TIME (Years) 0 Shares Outstanding Book Value Prike Per Share Return On Equity Cost of Equity Long Term Growth Dividends Per Share 135 00 $6,750 00 80 00 12 0 16 Company X's dividend payout ratio is closest to A 0 3 B 0 4 C 0 5 D 0 6 E 0 7 17 The present value of Company X's first dividend payment one year from now (T1) is closest to A $3 3 3 B $3 40 C $3 73 D $3 81 E $3 83

Question

Assume a Company X's stock price today and cost of equity is consistent with the dividend discount model for constant growth HINT  Cost of Equity Dividend Yield   Capital Gain Yield  Use the information in the table below to answer problems 16 17  Any missing information will need to be solved for TIME (Years) 0 Shares Outstanding Book Value Prike Per Share Return On Equity Cost of Equity Long Term Growth Dividends Per Share 135 00 $6,750 00 80 00 12 0  16  Company X's dividend payout ratio is closest to  A  0 3 B  0 4 C  0 5 D  0 6 E  0 7 17  The present value of Company X's first dividend payment one year from now (T1) is closest to  A  $3 3 3 B  $3 40 C  $3 73 D  $3 81 E $3 83

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Assume a Company X's stock price today and cost of equity is consistent with the dividend discount model for constant growth HINT: Cost of Equity

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