at the end 2011 you are expected to determine the marine's incs stock price.

the expected eps for 2012 is 2,50$ and the equity cost of capital is 11%.

a. if the company decides to use 70% of its earnings of 2012 to finance new projects with an expected return of 8,5%, which will be the price of the marine's share?

b. assume instead that the company could invest in 2 projects. to undergo the first one, 40% of its eps in 2012 will be used, determining a constant and permanent increase of subsequent eps of 0,35$.

c. assume that the marine's stock price in 2011 is $21,50 and that the company plans to pay dividends for 40% of its earnings each year forever. which will be the roe expected by the market and coherent with the invested earnings?

At the end of 2011 you are expected to determine the Marines Ine stock price The expected EPS for 2012 is $2.50 and the equity cost of capital is 11% A. If the company decides to use 70% of its camings of 2012 to finance new projects with an expected retum of 8.5%, which will be the price of the Marine's shares? B. Assume instead that the company could invest in two projects. To undergo the first one, 40% of its EPS in 2012 will be used, determining a costant and permanent increase of the subsequent EPS of $0.35 For the second one, 60% of Is EPS in 2013 will be used determining a costant and permanent increase of the subsequent EPS of $0.70. Determine the Marine's stock price according to these new assumption C. Assume that the Marine's stock price in 2011 is $21.50 and that the company plans to pay dividends for 405, of its comings each year forever Which will be the ROE expected by the market and coherent with the invested Gamings? At the end of 2011 you are expected to determine the Marines Ine stock price The expected EPS for 2012 is $2.50 and the equity cost of capital is 11% A. If the company decides to use 70% of its camings of 2012 to finance new projects with an expected retum of 8.5%, which will be the price of the Marine's shares? B. Assume instead that the company could invest in two projects. To undergo the first one, 40% of its EPS in 2012 will be used, determining a costant and permanent increase of the subsequent EPS of $0.35 For the second one, 60% of Is EPS in 2013 will be used determining a costant and permanent increase of the subsequent EPS of $0.70. Determine the Marine's stock price according to these new assumption C. Assume that the Marine's stock price in 2011 is $21.50 and that the company plans to pay dividends for 405, of its comings each year forever Which will be the ROE expected by the market and coherent with the invested Gamings