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need answers A,B,C 3. You are given the following information for Chevron Corp. (Ticker: CVX): EPS 6.28 Year 2004 2005 2006 2007 2008 2009 2010
need answers A,B,C
3. You are given the following information for Chevron Corp. (Ticker: CVX): EPS 6.28 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales 150,865 193,641 204,892 214,091 264,958 167,402 198,198 244,371 230,590 220,156 200,494 129,925 110,215 134,674 158,902 Net income 13,328 14,099 17,138 18,688 23,931 10,483 19,024 26,895 26,179 21,423 19,241 4,587 -431 9,269 14,860 6.54 7.80 8.77 11.67 5.24 9.48 13.44 13.32 11.09 10.14 2.45 -0.27 4.85 7.74 DPS 1.53 1.75 2.01 2.26 2.53 2.66 2.84 3.09 3.51 3.90 4.21 Total Sharehold assets er's equity 93,208 45,230 125,833 62,676 132.628 68,935 148,786 77,088 161,16586,648 164,621 91,914 184,769 105,081 209,474 121,382 232,982 136,524 253,753 149,113 266,026 155,028 266,103 152,716 260,078 145,556 253,806 148,124 253,863 154,554 4.28 4.29 4.32 4.48 a. Calculate the sustainable growth rate (s) based on the PRAT and each PRAT component for 2018. (Use the 2018 ending balances for balance sheet items where needed.) b. Calculate the compounded annual growth rate (CAGR) for DPS between 2004 and 2018 c. If you think CVX can grow dividends at an annual rate of 5% for perpetuity and its appropriate discount rate is 10%, what is your estimate for the fair value of CVX's share price Step by Step Solution
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