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Consider the following information which relates to a given company: Item 2019 Value $6.25 $35.62 Earnings Per Share Price Per Share (Common Stock) Book Value
Consider the following information which relates to a given company: Item 2019 Value $6.25 $35.62 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $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: Determine the firm's current book value per share. $ 30.42 per share (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item 2019 Value $5.9 $1.6 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $60.84 Million 2 Million $4.06 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.2% in the future, or possibly 8.8% for the next 2 years and 6.2% 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 12.21%. Currently, the risk-free rate is 5.47%. Required: Determine the firm's P/E ratio. 0.27 (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item 2019 Value $6.19 $37.17 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $62.69 Million 2.5 Million $5.08 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.85% in the future, or possibly 8.3% for the next 2 years and 6.13% 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 8.39% to 4.1%. Currently, the risk-free rate is 9.5%. Required: Determine the current required return for the firm's stock. 17.89 % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item 2019 Value $6.85 $36.63 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $64.12 Million 2.5 Million $5.22 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.06% in the future, or possibly 8.53% for the next 2 years and 6.11% 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 8.6% to 3.4%. Currently, the risk-free rate is 8.3%. Required: Determine the new required return for the firm's stock. 11.7 % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
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