Consider the following information which relates to a given company: Item 2019 Value $6.28 $35.68 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $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 12.21%. Currently, the risk-free rate is 5.58%. Required: Assuming no growth in future dividends, and a required return of 16.13%, find the value per share of the firm's stock. $ 25.36 (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: 2019 Value $6.18 $37.06 Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $64.36 Million 2.5 Million $4.31 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.5% in the future, or possibly 8.43% for the next 2 years and 6.57% 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 8.32% to 12.67%. Currently, the risk-free rate is 5.58%. Required: Assuming a constant annual 6.5% growth rate in future dividends, find the value per share of the firm's stock. The required return is 16.67%. $ 42.38 (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23) Consider the following information which relates to a given company: Item 2019 Value $6.41 $36.88 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $60.83 Million 2.1 Million $4.7 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.03% in the future, or possibly 8.54% for the next 2 years and 6.44% 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 8.76% to 12.98%. Currently, the risk-free rate is 5.65%. Required: Assuming a constant annual 8.54% growth rate in dividends per share over the next two years and 6.44% thereafter, find the value per share of the firm's stock. The required return is 16.37%. $ 5.54 (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
