I want the solution and general accounting In May 2021, Harbor Tech Corporation traded at $35 pershare on a book value of $60 per share. Analysts wereestimating that Harbor Tech would earn $1.20 per sharefor the year ending December 2021. The firm was payingan annual dividend of $1.80 per share.Calculate the return on common equity (ROCE) thatanalysts were forecasting for 2021.

Step 1: Definition of Return on Common Equity (ROCE)Return on Common Equity (ROCE) is a financial…

Answered: In May 2021, Harbor Tech Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Dell Corporation has reported the BV of common equity of $10 billion at the end of 2020, with 400 million shares outstanding. The required rate of return is 5%. The company trades in the stock market for $30. calculate the price-to-book ratio.
Procter and Gamble (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its dividends by 7.9% per year for the next five years (through 2023), and thereafter by 2.7% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.9% per year, use the dividend-discount model to estimate its value per share at the end of 2018.
Procter and Gamble (PG) paid an annual dividend of $2.88 in 2021. You expect PG to increase its dividends by 7.2% per year, for the next five years (through 2026), and thereafter by 2.9% per year. If the appropriate equity cost of capital for Procter and Gamble is 7.3% per year, use the dividend-discount model to estimate its value per share at the end of 2021. The price per share is $. (Round to the nearest cent.)
Procter and Gamble (PG) paid an annual dividend of $2.94 in 2021. You expect PG to increase its dividends by 7.1% per year for the next five years (through 2026), and thereafter by 2.6% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.9% per year, use the dividend-discount model to estimate its value per share at the end of 2021.
Giant Enterprises' stock has a required return of 13.1%. The company, which plans to pay a dividend of $1.65 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2013-2019 period, when the following dividends were paid: ( see attached chart ) a. If the risk-free rate is 4%, what is the risk premium on Giant's stock? b. Using the constant-growth model, estimate the value of Giant's stock. (Hint: Round the computed dividend growth rate to the nearest whole percent.) c. Explain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock.
Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.30 per share at the end of 2019. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 5% annually. The company's cost of equity (rs) is 9%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)? Do not round intermediate calculations. Round your answer to the nearest cent.
Procter and Gamble (PG) paid an annual dividend of $2.89 in 2018. You expect PG to increase its dividends by 7.7% per year for the next five years (through 2023), and thereafter by 3.3% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.7% per year, use the dividend-discount model to estimate its value per share at the end of 2018. (Round to the nearest cent.)
Procter and Gamble (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its dividends by 7.9% per year for the next five years (through 2023), and thereafter by 2.7% per year. If the appropriate equity cost of capital for Procter and Gamble is 8.9% per year, use the dividend-discount model to estimate its value per share at the end of 2018. * please show work
Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.10 per share at the end of 2019. The dividend is expected to grow at 12% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)? Do not round intermediate calculations. Round your answer to the nearest cent.$______ per share
1. An analyst is reviewing the valuation of ALUW as of the beginning of October 2018 when ALUW is selling for GHc50. In the previous year, ALUW paid a GHc 1.48 dividend that the analyst expects to grow at a rate of 10 percent annually for the next four years at the end of the year 4, the analyst expects the dividend to equal 40% of earnings per share and the trailing P/E for ALUW to be 14. If the required return on ALUW common stock is 10.5%: Required: Calculate the per-share value of ALUW’S common stock.
Procter and Gamble (PG) paid an annual dividend of $2.87 in 2018. You expect PG to increase its dividends by 8% per year for the next five years (through 2023), and thereafter by 3% per year. If the appropriate equity cost of capital for Procter and Gamble is 8% per year, use the dividend-discount model to estimate its value per share at the end of 2018. A) Calculate the present value of dividends through 2023. B) Calculate the present value of the rest of the dividends in 2023 C) USING the function PV in EXCEL, calculate the present value of the rest of the dividends in 2018 D) Calculate the value per share of Procter and Gamble at the end of 2018 **Show the work and steps

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