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Problem 17-20 Payout Policy (LO3) Little Olhos outstanding million shares with a total market of $6 milion Themis expected to pay $100 milion of vidends

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Problem 17-20 Payout Policy (LO3) Little Olhos outstanding million shares with a total market of $6 milion Themis expected to pay $100 milion of vidends next year and thereafter the amount paid out expected to grow by 4% a year in perpetuity Thus, the expected vidend is $104 million in year 2. 510815 million in year and so on. However, the company has heard that the value of a share depends on the flow of diends, and therefore, tornounces that next year's dividend will be increased to $2 million and at the extra cash will be raised immediately afterward by stue of shares her that the total amount paid out each year will be as previously forecasted that is $1.04 milion in your and increasing by 4 in each subsequent you 2. At what price will the new shares be issued a year (Do not round intermediate calculations. Round your answer to 2 decimat places) D. How many shoes wit the firm need to issue (Do not round intermediate calculations. Round your answer to the nearest wole number) What will be the expected didend payments on these new wores, and was therefore, will be pod out to the aid orthoides er year ? (Do not round intermediate calculations. Round your answer to 2 decimal places) d. Recalculate the present value of the Price per share to current that holders (Do not round intermediate calculations. Round your answer to the nearest whole dar) Price per her Number of shares Der har Problem 17-20 Payout Policy (LO3) Little Olhos outstanding million shares with a total market of $6 milion Themis expected to pay $100 milion of vidends next year and thereafter the amount paid out expected to grow by 4% a year in perpetuity Thus, the expected vidend is $104 million in year 2. 510815 million in year and so on. However, the company has heard that the value of a share depends on the flow of diends, and therefore, tornounces that next year's dividend will be increased to $2 million and at the extra cash will be raised immediately afterward by stue of shares her that the total amount paid out each year will be as previously forecasted that is $1.04 milion in your and increasing by 4 in each subsequent you 2. At what price will the new shares be issued a year (Do not round intermediate calculations. Round your answer to 2 decimat places) D. How many shoes wit the firm need to issue (Do not round intermediate calculations. Round your answer to the nearest wole number) What will be the expected didend payments on these new wores, and was therefore, will be pod out to the aid orthoides er year ? (Do not round intermediate calculations. Round your answer to 2 decimal places) d. Recalculate the present value of the Price per share to current that holders (Do not round intermediate calculations. Round your answer to the nearest whole dar) Price per her Number of shares Der har

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