No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 11%. What is the price-earnings ratio of the company? What would the P/E ratio be if the discount rate were 10%?
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No-Growth industries pays out all of its earnings as dividends.
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- The Evanec Company’s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.a. What is Evanec’s cost of retained earnings, rs?b. What is Evanec’s percentage flotation cost, F?c. What is Evanec’s cost of new common stock, re?Forward Inc. just reported annual earnings of $1 per share this year. The firm's ROE is 0.10% and its earnings retention ratio is 0.6%. If the firm's market capitalization rate (Rs) is 15%, How much is the P/E ratio (P0/E1)?If a company has just paid a dividend of $4 per share and never expects to pay another dividend forevor, what is the pprice of this share if the discount rate is 10%?
- Ezra's Inc's next expected dividend is 2.40 per share. The growth rate of its dividends is expected to be 3.5% and its common stock is currently trading at 56 per share. The company thinks it can net 53.20 per share after flotation costs if it sells new shares of stock. What is the company's percentage flotation costs, F?Apple Inc. (AAPL) is expected to pay a dividend of $1.59 at the end of the year. AAPL’s dividend payout ratio and return on equity (ROE) are 41.27% and 6.86%, respectively. Other things held constant, what would AAPL’s stock price be if the required rate of return is 6.47%? A. $93.14 B. $84.97 C. $72.26 D. $65.13company presently pays no dividend. You anticipate company will pay an annual dividend of $1.00 per share two years from today and you expect dividends to grow by 3% per year thereafter. If company’s equity cost of capital is 14%, then what is a fair value for a share of company today? Enter answer rounded to the nearest cent.
- The Evanec Company s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share. What is Evanec's cost of retained earnings, rs? What is Evanec's percentage flotation cost, F? What is Evanec's cost of new common stock, re?Eastern Electric currently pays a dividend of about $1.64 per share and sells for $27 a share. If its dividend growth rate is 7.0 %, and the payout ratio is 0.53 , what must be the ROE of the firm?The XYZ Corporation pays a dividend of $1 for each share and its required rate of return is 8%. Answer the following questions: a). Assuming zero growth in dividends, what is the value of each share?
- Clark equipment currently pays a common stock dividend of $3.50 per share. The common stock price is $60. Analysts have forecast that earnings and dividends will grow at an average annual rate of 6.8 percent for the foreseeable future. What is the marginal cost of retained earnings?16) IGM Realty had stock prices of $33, $33, $38, $36, and $28 at the end of the last five quarters. If IGM pays a dividend of $1 at the end of each quarter, what is the annual realized return on IGM? A) -5.62% B) -4.49% C) -4.72% D) -4.94%What is the answer ?