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Sundrop Steel manufactures a variety of steel forgings for the sale in the GCC. The company's current EPS and forecasted EPS, current dividends and forecasted
Sundrop Steel manufactures a variety of steel forgings for the sale in the GCC. The company's current EPS and forecasted EPS, current dividends and forecasted dividends are given in the table below. Long term growth rate of AEG and Required Return are also shown in the table. AEG after year 3 is zero Required Return 12% Year 1 2 3 EPS 1.1 1.32 1.584 1.7424 DPS 0.44 0.484 0.5324 0.58564 1. What is the AEG in year 2? 2. What is today's value per share using the AEG model? Select one: a. AEG = .0.1804 and Value Per Share = 16.49 b. AEG = 1636 and Value Per Share = 13.32 c. None of these d. AEG = 3344 and Value Per Share = 19.86 Sundrop Steel manufactures a variety of steel forgings for the sale in the GCC. The company's current EPS and forecasted EPS, current dividends and forecasted dividends are given in the table below. Long term growth rate of AEG and Required Return are also shown in the table. AEG after year 3 is zero Required Return 12% Year 1 2 3 EPS 1.1 1.32 1.584 1.7424 DPS 0.44 0.484 0.5324 0.58564 1. What is the AEG in year 2? 2. What is today's value per share using the AEG model? Select one: a. AEG = .0.1804 and Value Per Share = 16.49 b. AEG = 1636 and Value Per Share = 13.32 c. None of these d. AEG = 3344 and Value Per Share = 19.86
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