For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Scenario A Scenario B Scenario C (Amounts in thousands) ANS: Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast Scenario A Scenario B $28 $54 $123 Forecast of Dividend in year 2016 Scenario C (Amounts in thousands) $28 $54 $123 4% 9% 5% 4% Long-Run Cost of Growth Forecast Capital 9% 11% 5% 15% 14% 11% 15% 14% Continuing value Dividend Perpetuity Beginning Beginning in 2017 with of 2017 of 2012 growth $29.12 14.286 $416.00 $58.86 16.667 $981.00 $129.15 11.111 $1.435.00 $246.88 $487.73 $745.29
For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Scenario A Scenario B Scenario C (Amounts in thousands) ANS: Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast Scenario A Scenario B $28 $54 $123 Forecast of Dividend in year 2016 Scenario C (Amounts in thousands) $28 $54 $123 4% 9% 5% 4% Long-Run Cost of Growth Forecast Capital 9% 11% 5% 15% 14% 11% 15% 14% Continuing value Dividend Perpetuity Beginning Beginning in 2017 with of 2017 of 2012 growth $29.12 14.286 $416.00 $58.86 16.667 $981.00 $129.15 11.111 $1.435.00 $246.88 $487.73 $745.29
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 2P: AFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end...
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