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Strong Cement Company's earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future.
Strong Cement Company's earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 60 percent of earnings. 2 points Calculate the Growth of earnings per share of Strong cement Company. Year Earnings per Share 20X4 $2.60 20X5 2.73 20X6 2.87 20x7 3.01 20x8 3.16 Your answer 2 points Calculate Projected dividend for the next year 20X9 of Strong cement Company. Year Earnings per Share 20X4 $2.60 20X5 2.73 20X6 2.87 20X7 3.01 20x8 3.16 Your answer 3 points If the required rate of return is 10 percent, what is the anticipated stock price at the beginning of 20x9 Strong cement Company. ? Your answer 5 points ** Mr. Warren Buffet calls his broker to inquire about purchasing a bond of Amazon Inc. His broker quotes a price of $1,150. Mr. Warren is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 12 percent and it has 20 years remaining until maturity. The current yield to maturity on similar bonds is 11 percent. Do you think the bond is overpriced in the market? Do the necessary calculations
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