An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2013-2017. She asks you to value the 1.380 million shares outstanding at the end of 2012, when common shareholders' equity stood at $4,310 million. Use a required rate of retum for equity of 10 percent in your calculations -2013-2014E-2015E-2016E-2017 -500- 629 -6404 -349-367 365.4 Eamings Dividends 115 -366 -670- 160- Forecasted return on common shareholder equity (ROCE) for year 2017 19%

An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2013-2017. She asks you to value the 1.380 million shares outstanding at the end of 2012, when common shareholders' equity stood at $4,310 million. Use a required rate of retum for equity of 10 percent in your calculations -2013-2014E-2015E-2016E-2017 -500- 629 -6404 -349-367 365.4 Eamings Dividends 115 -366 -670- 160- Forecasted return on common shareholder equity (ROCE) for year 2017 19%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The common shareholders of BFG inc. received the following dividends (per share) in recent years: $0.10 in March 2019, $0.15 in March 2020, $0.15 in March 2021 and $0.20 in March 2022 (the dividend is still paid at the end of March). Dividend growth is expected to continue at the average historical rate for another four years. Thereafter, the dividend growth rate will be 5%. The rate of return demanded by the common shareholders of BFG inc. is 14%. Your valuation date is the beginning of April 2022. Calculate the average growth rate of the dividend per share over the last financial years, from March 2019 to March 2022 and calculate the price at which this common stock should sell based on the information provided to you.
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below: (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)
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Question 1- Texas Instruments (TXN) (please include your Excel spreadsheet file!) Actual data for Texas Instruments common stock! Suppose on December 31, 2011 you purchased TXN stock at $29.11 per share. You hold TXN until December 31, 2021 when you sold it at $188.47 per share. During this holding period, you received the following annual dividends per share. Year Annual DPS Year Annual DPS 2012 $0.72 2017 $2.12 2013 $1.07 2018 $2.63 2014 $1.24 2019 $3.21 2015 $1.40 2020 $3.72 2016 $1.64 2021 $4.21 Using the above TXN stock data and using Excel spreadsheet, determine the average annual return for your TXN investment. Question 2 TXN stock price on December 31, 2020 was $162.70 per share. Calculate the 2021 annual "holding period return" (HPR). Show all work. Question 3 Using the table above, determine the average annual growth rate for TXN dividends per share for the period 2012-2021. Show formula, input, & calculation. Excel is optional.
Please Solve In 20mins
You purchased shares of a TSX listed company at the cost of $53.40 per share at the beginning of 2017. Over the next four years, the stock had following stock prices and dividends: Year Year End Price Dividends 2017 $55.70 $1.80 2018 $52.40 $1.90 2019 $50.80 $1.00 2020 $57.90 $1.30 Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56): 1) 2017 percentage return: 2) 2018 percentage return: 3) 2019 percentage return: 4) 2020 percentage return: 5) Arithmetic mean: 6) Geometric mean: 7) Standard deviation (sample):
G. C. Murphey’s 2016 financial statements show average shareholders’ equity of $20,412 million, net income of $5,040 million, and average total assets of $86,700 million.How much is G. C. Murphey’s return on assets for the year? Question 21 options: A) 4.77% B) 5.81% C) 11.42% D) 24.69%
A Residual Earnings Valuation (Easy) An analyst presents you with the following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2013-2017. She asks you to value the 1,380 million shares outstanding at the end of 2012, when common shareholders' equity stood at $4,310 million. Use a required return for equity of 10 percent in your calculations. Earnings Dividends 2013E 388.0 115.0 2014E 570.0 160.0 2015E 599.0 349.0 2016E 629.0 367.0 2017E 660.4 385.4 Chapter 5 Accrual Accounting and Valuation: Pricing Book Values 169 a. Forecast book value, return on common equity (ROCE), and residual earnings for each of the years 2013-2017. b. Forecast growth rates for book value and residual earnings for each of the years 2014-2017. c. Calculate the per-share value of the equity from this pro forma. Would you call this a Case 1, 2, or 3 valuation? d. What is the premium over book value given by your calculation? What is the P/B ratio?
Analyzing and Interpreting Stockholders' Equity and EPS Following is the stockholders' equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information. $ millions except per share amounts 2014 2013 Net earnings attributable to Procter & Gamble shareholders $11,156 $11,797 Common dividends 5,883 5,534 Preferred dividends 256 233 Basic net earnings per common share $3.82 $4.12 Diluted net earnings per common share $3.66 $3.93 Shareholders' equity: Convertible class A preferred stock, stated value $1 per share $1,195 $1,234 Common stock, stated value $1 per share 4,008 4,008 Additional paid-in capital 63,181 62,405 Treasury stock, at cost (shares held: 2014--1261.2; 2013--1243) (69,604) (67,278) Retained earnings 75,349 70,682 Accumulated other comprehensive income/(loss) (9,333) (2,054) Other (761) (996) Shareholders'…
Stock price of ABC company at the end of 2018 was $85. In 2019 the quarter end stock prices are $94, $80, $75, and $70 for the 1st, 2nd, 3rd, and 4th quarters respectively. If company pays $4.8 dividend at the end of each quarter what is the annual return for 2019?
Below are the stock returns for the past five years for Agnew Industries: Year Stock Return 2021 2020 2019 2018 2017 What were the stock's arithmetic and geometric means during this five-year period, respectively? 23% 17% 1% 14% 12% 13.40% and 12.16% O 14.40% and 14.16% O 13.40% and 13.16% O 14.40% and 13.16% O 14.90% and 14.16%
First Bank's annual dividends are indicated below. Find the required rate of return for this stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Assume the January 1, 2011 price of the stock was $31.00. What was the required return for First Bank's stock? Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend $0.85 $0.96 $1.01 $1.14 $1.20 $1.26 $1.42 $1.49 $1.68 $1.90 ..... What was the estimated annual required return for First Bank's stock? % (Round to two decimal places.)

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