Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you answer those 3 questions please The Dillon Company is planning a $1 million share repurchase. Its current stock price is $80 per share
can you answer those 3 questions please
The Dillon Company is planning a $1 million share repurchase. Its current stock price is $80 per share and there are 800,000 shares outstanding prior to the repurchase. Earnings per share without the repurchase would be $4 per share. Assume the company funds the repurchase by borrowing at a before-tax rate of 6%. The tax rate is 35%. Assuming the P/E ratio doesn't change, what would be the share price following the repurchase? $80.28 $79.75 $80.74 $80.99 Question 14 ( 1 point) Based on the information presented below. which company's earnings should be expected to grow at the fastest rate? Based on the information presented below, which company's earnings should be expected to grow at the fastest rate? XYZ stock recently paid a dividend of $2.50. The dividend is expected to grow at a rate of 8% next year and 5% the following year. After two years, the dividend will grow at a rate of 4% in perpetuity. The required return is 13% and the stock is currently selling at a price of $32.23 per share. What is the expected return for XYZ ? 9.83% 9.36% 8.89% 9.60% 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