Kimberly-Clark, a household product manufacturer, reported earnings per sha 3.20 in 1993, and paid dividends per share of $1.70 in that year. The firm rep lepreciation of $315 million in 1993, and capital expenditures of $475 million. (' vere 160 million shares outstanding, trading at $51 per share.) This ratio of c xpenditures to depreciation is expected to be maintained in the long term. The wo apital needs are negligible. Kimberly-Clark had debt outstanding of $1.6 billior ntends to maintain its current financing mix (of debt and equity) to finance nvestment needs. Assume that the firm is in steady state, and earnings per lividends per share, and free cash flow to equity per share are all expected to gro year. The stock had a beta of 1.05. The treasury bond rate is 6.25% and the m
Kimberly-Clark, a household product manufacturer, reported earnings per sha 3.20 in 1993, and paid dividends per share of $1.70 in that year. The firm rep lepreciation of $315 million in 1993, and capital expenditures of $475 million. (' vere 160 million shares outstanding, trading at $51 per share.) This ratio of c xpenditures to depreciation is expected to be maintained in the long term. The wo apital needs are negligible. Kimberly-Clark had debt outstanding of $1.6 billior ntends to maintain its current financing mix (of debt and equity) to finance nvestment needs. Assume that the firm is in steady state, and earnings per lividends per share, and free cash flow to equity per share are all expected to gro year. The stock had a beta of 1.05. The treasury bond rate is 6.25% and the m
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
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