Inserisci Home Disegno Formule Dimmi Layout di pagina Dati Revisione Visualizza X Calibri (Corpo) 12 ap v == Generale v A A A Incolla GCS 688 HER % 9 Formattazione condizionale M E17 fx B D E F G H K 1 It's december 2018, and BM INC, an al equity firm, just reported EPS= 6,00 $ per share 2 The Board has decided to cut its dividend to 3 $ per share (vs. almost 4 $ in 2017), and retain these funds. 3 The firm has just paid the dividend for 2018, and plans to keep its dividend at 3 $ for 2019 as well. 4 In subsequent years (starting from 2020), It expects its growth oppotunities to slow, and it will be still be able to fund its growth internally with a target 60% dividend payout. 5 Suppose BM's existing operations will continue to generate the current level of earnings per share in the future. 6 Assume further that the return on new investments is continuing to be 15% and equity cot of capital is 10% 7 a) Estimate BM's EPS in 2019 and 2020 8 b) What is the value of the share at the start of 2019? 9 c) What is the retention that allows a Price per share at the start of 2019 higher than 102$? 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 +