DFB, Inc expects earnings next year of S5 07 per share, and it plans to pay a $3 23 dividend to shareholders (assume that is one year from now) DFB will retain 51 84 per share of its earnings to reinvest in new projects that have an expected return of 15,5 per year Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares Assume next dividend is due in one year a What growth rate of earnings would you forecast for DFB b If DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock c Suppose instead that DFB paid a dividend of SA 23 per share at the end of this year and retained only $0 84 per share in earnings That is, it chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now Should DFB raise its dividend a What growth rate of earnings would you forecast for DFB DFB's growth rate of earnings is (Round to one decimal place) b If DFB's equity cost of capital is 11 8 , what price would you estimato for DFB stock if DFB's equity cost of capital is 118 , then DFB's stock price will be $(Round to the nearest cent) c Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only $0 84 per share in earnings That is, it chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now DFB paid a dividend of 54 23 per share next year and retained only $0 84 per share in earnings, then DFB's stock price would be $(Round to the nearest cent) Should DFB raise its dividend (Select the best choice below) NE ng OA No, DFB should not raise dividends because companies should always reinvest as much as possible ng OB Yes, DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price ng OC No, DFB should not raise dividends because the projects are positive NPV VER ng Click to select your answer(s) rea Desidop $ o BE ee DFB, Inc expects earnings next year of $5 07 per share, and it plans to pay a 53 23 dividend to shareholders (assume that is one year from now) DFB will retain $1 84 per share of its earnings to reinvest in new projects that have an expected return of 15 5 per year Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares Assume next dividend is due in one year a What growth rate of earnings would you forecast for DFB b I DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock ric c Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only $0 84 per share in earnings That is, it chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now 21 Should DFB raise its dividend ox) a What growth rate of earnings would you forecast for DFB2 DFB's growth rate of earnings is (Round to one decimal place) b It DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock 1 DFB's equity cost of capital is 11 8 then DFB's stock price will be s (Round to the nearest cent) c Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only 50 84 per share in camings That is, it chose to pay a higher Fintrodu dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now randon DFB paid a dividend of 54 23 per share next year and retained only So 84 per share in earnings, then DFB's stock price would be $ (Round to the nearest reading cont) readins Should DFB raise its dividend (Select the best choice below) reading O A No, DFB should not raise dividends because companies should always reinvest as much as possible reading OB Yes DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price reading OC NO, DFB should not raise dividends because the projects are positive NPV reading Click to select your answer(s) Unred e e RTE do ENG Desktop 8 13 E II SS o DFB, Inc expects earnings next year of $5 07 per share, and it plans to pay a $3 23 dividend to shareholders (assume that is one year from now) DFB will retan 51 84 12 per share of its earnings to reinvest in new projects that have an expected return of 155 per year Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares Assume next dividend is due in one year a What growth rate of earnings would you forecast for DFB b If DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock prid c Suppose instead that DFB paid a dividend of $423 per share at the end of this year and retained only 50 84 per share in earnings That is chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now 12N Should DFB raise its dividend x) DFB's growth rate of earnings is (Round to one decimal place) b If DFB's equity cost of capital is 118 what price would you estimate tor DFB stock If DFB's equity cost of capital is 118 , thon DFB's stock price will be s (Round to the nearest cent) c Suppose instead that DFB paid a dividend of S4 23 per share at effe end of this year and retained only 50 84 per share in eamings That is, tchose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the fom now trodu 1 DFB paid a dividend of SA 23 per share next year and retained only $0 84 per shure in earnings, then DFB's stock price would be $(Round to the newest andom cent) eading Should DFB raise its dividend (Select the best choice below) reading OA No, DFB should not raise dividends because companies should always reinvest as much as possible reading B Yes, DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price reading Oc No DFB should not raise dividends because the projects are positive NPV reading OD Yes, DFB should raise dividends because the return on new investments is lower than the cost of capital reading Click to select your answer(s) Unrea Desktop ee 13 do ENG 42 PM 3 11 2020 O

Question

DFB, Inc  expects earnings next year of S5 07 per share, and it plans to pay a $3 23 dividend to shareholders (assume that is one year from now) DFB will retain 51 84 per share of its earnings to reinvest in new projects that have an expected return of 15,5  per year  Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares  Assume next dividend is due in one year a  What growth rate of earnings would you forecast for DFB  b  If DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock  c  Suppose instead that DFB paid a dividend of SA 23 per share at the end of this year and retained only $0 84 per share in earnings That is, it chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now  Should DFB raise its dividend  a  What growth rate of earnings would you forecast for DFB  DFB's growth rate of earnings is   (Round to one decimal place) b  If DFB's equity cost of capital is 11 8 , what price would you estimato for DFB stock  if DFB's equity cost of capital is 118 , then DFB's stock price will be $(Round to the nearest cent) c  Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only $0 84 per share in earnings That is, it chose to pay a higher dividend instead of reinvesting in as many new projects  If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now  DFB paid a dividend of 54 23 per share next year and retained only $0 84 per share in earnings, then DFB's stock price would be $(Round to the nearest cent) Should DFB raise its dividend  (Select the best choice below) NE ng OA  No, DFB should not raise dividends because companies should always reinvest as much as possible ng OB  Yes, DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price ng OC  No, DFB should not raise dividends because the projects are positive NPV VER ng Click to select your answer(s)  rea Desidop $ o BE ee DFB, Inc  expects earnings next year of $5 07 per share, and it plans to pay a 53 23 dividend to shareholders (assume that is one year from now) DFB will retain $1 84 per share of its earnings to reinvest in new projects that have an expected return of 15 5  per year Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares  Assume next dividend is due in one year  a  What growth rate of earnings would you forecast for DFB  b  I DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock  ric c  Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only $0 84 per share in earnings  That is, it chose to pay a higher dividend instead of reinvesting in as many new projects If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now  21 Should DFB raise its dividend  ox) a  What growth rate of earnings would you forecast for DFB2 DFB's growth rate of earnings is   (Round to one decimal place) b  It DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock  1 DFB's equity cost of capital is 11 8  then DFB's stock price will be s (Round to the nearest cent) c  Suppose instead that DFB paid a dividend of $4 23 per share at the end of this year and retained only 50 84 per share in camings  That is, it chose to pay a higher Fintrodu dividend instead of reinvesting in as many new projects  If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now  randon DFB paid a dividend of 54 23 per share next year and retained only So 84 per share in earnings, then DFB's stock price would be $ (Round to the nearest reading cont) readins Should DFB raise its dividend  (Select the best choice below)   reading O A No, DFB should not raise dividends because companies should always reinvest as much as possible  reading OB Yes DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price  reading OC NO, DFB should not raise dividends because the projects are positive NPV  reading Click to select your answer(s)  Unred e e RTE do ENG Desktop 8 13 E II SS o DFB, Inc  expects earnings next year of $5 07 per share, and it plans to pay a $3 23 dividend to shareholders (assume that is one year from now) DFB will retan 51 84 12  per share of its earnings to reinvest in new projects that have an expected return of 155  per year  Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares  Assume next dividend is due in one year a  What growth rate of earnings would you forecast for DFB  b  If DFB's equity cost of capital is 11 8 , what price would you estimate for DFB stock  prid c  Suppose instead that DFB paid a dividend of $423 per share at the end of this year and retained only 50 84 per share in earnings  That is chose to pay a higher dividend instead of reinvesting in as many new projects  If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now  12N Should DFB raise its dividend  x)  DFB's growth rate of earnings is   (Round to one decimal place) b  If DFB's equity cost of capital is 118  what price would you estimate tor DFB stock  If DFB's equity cost of capital is 118 , thon DFB's stock price will be s (Round to the nearest cent) c  Suppose instead that DFB paid a dividend of S4 23 per share at effe end of this year and retained only 50 84 per share in eamings That is, tchose to pay a higher dividend instead of reinvesting in as many new projects  If DFB maintains this higher payout rate in the future, what stock price would you estimate for the fom now  trodu 1 DFB paid a dividend of SA 23 per share next year and retained only $0 84 per shure in earnings, then DFB's stock price would be $(Round to the newest andom cent) eading Should DFB raise its dividend  (Select the best choice below) reading OA  No, DFB should not raise dividends because companies should always reinvest as much as possible reading B  Yes, DFB should raise dividends because, according to the dividend discount model, doing so will always improve the share price reading Oc  No DFB should not raise dividends because the projects are positive NPV  reading OD  Yes, DFB should raise dividends because the return on new investments is lower than the cost of capital reading Click to select your answer(s) Unrea Desktop ee 13 do ENG 42 PM 3 11 2020   O

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DFB, Inc. expects earnings next year of S5 07 per share, and it plans to pay a $3.23 dividend to shareholders (assume that is one

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