Consider the following information which relates to a given company Item 2019 Value $6.1 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $3776 $642 million 255 million $4.9 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.65% for the next 2 years and 5.93% 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 8.95% to 1069% Currently, the risk-free rate is 5.61% Required: Determine the firm's P/E ratio Consider the following information which relates to a given company 2019 Value Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $6,56 $39.06 $64.2 255 $49 nition million Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.65% for the next 2 years and 5.938 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 8.95% to 1069% Currently, the risk-free rate is 5.61%. Required: Determine the current required return for the firm's stock Consider the following information which relates to a given company 2019 Value $656 Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity Total Common Stock Outstanding Dividend Per Share $39.06 $642 million 2.53 million $4.9 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.69% for the next 2 years and 593% 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 8.99 to 1069% Currently, the risk-free rate is 5.61% Required: Determine the new required return for the firm's stock Consider the following information which relates to a given company Item 2019 Value $6,56 $39.06 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $642 2.55 $4.9 million million Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.69% ter the rest 2 years and 5.93% 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 B.95 to 10.693, Currently, the risk-free rate is 5.61% Required: Assuming no growth in future dividends, and a required return of 16.15%, find the value per share of the firm's Comider 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 $6.56 $39.06 $64.2 milli million 2.55 $49 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.65% tor the next 2 years and 5.93% 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 8,95% to 10.49% Currently, the risk-free rate is 5.61%. Required: Assuming a constant annual 5.78% growth rate in future dividends, find the value per share of the firm's stock. The required return is 18.15%
