Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

send me only final answer,no explanation The Capital Structure of BGD Plc is: Em The ordinary shares have a market price of 24p. Dividends paid

image text in transcribed

image text in transcribed

send me only final answer,no explanation

The Capital Structure of BGD Plc is: Em The ordinary shares have a market price of 24p. Dividends paid in the last five years have been: 2p;2.1p;2.2p; 2.31p and 2.43p respectively. Dividends are paid once a year and the latest dividend, 2.43p has just been paid. The bonds have a market price of 120 per 100 face value. Interest is paid once a year. There is no corporate tax. Calculate the weighted average cost of capital (WACC) of BGD Plc. 15.63%25.50%12.71%47.50% Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio declined to 10 in five years? $86.46,$60.80 respectively $6.08,$5.04 respectively $72.22,$50.40 respectively $80.20,$56.40 respectively

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Management

Authors: Haim Levy, Marshall Sarnat

1st Edition

0137097751, 978-0137097753

More Books

Students also viewed these Finance questions