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Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total
Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $6.66 $37.53 $60.3 Million 2.4 Million $4.57 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.97% in the future, or possibly 8.48% for the next 2 years and 6.67% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.57% to 12.19%. Currently, the risk-free rate is 5.67%. Required: Determine the firm's current book value per share. $ per share (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $2.6 $6.5 $62.18 Million 2.4 Million $5.2 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.75% in the future, or possibly 8.01% for the next 2 years and 6.55% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.49% to 12.76%. Currently, the risk-free rate is 5.54%. Required: Determine the firm's P/E ratio. (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $6.49 $37.9 $63.66 Million 2.3 Million $4.04 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.9% in the future, or possibly 8.28% for the next 2 years and 6.26% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.19% to 2.1%. Currently, the risk-free rate is 7.9%. Required: Determine the current required return for the firm's stock. | % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $6.28 $35.68 $64.47 Million 2.4 Million $4.09 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.93% in the future, or possibly 8.91% for the next 2 years and 6.38% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.53% to 5.5%. Currently, the risk-free rate is 9.2%. Required: Determine the new required return for the firm's stock. % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2019 Value $6.25 $35.62 $63.89 Million 2.1 Million $5.81 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.15% in the future, or possibly 8.54% for the next 2 years and 6% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.21% to 12.99%. Currently, the risk-free rate is 5.43%. Required: Assuming no growth in future dividends, and a required return of 16.71%, find the value per share of the firm's stock. $ (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
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