ooperton Mining just announced it will cut its dividend from $3.88 to $2.59 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends wereCX Enterprises has the following expected dividends: $1.03 in one year, $1.18 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4.4% per yearZoom Enterprises expects that one year from now it will pay a total dividend of $5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on dividendsZoom Enterprises expects that one year from now it will pay a total dividend of S5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and it has 5.0 million shares outstanding, what is its share price today? The price per share is S. (Round to the nearest cent.) and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Cooperton Mining just announced it will cut its dividend from $3.88 to $2.59 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends wereCX Enterprises has the following expected dividends: $1.03
in one year, $1.18 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4.4% per yearZoom Enterprises expects that one year from now it will pay a total dividend of $5.0 million and repurchase $5.0 million
worth of shares. It plans to spend $10.0 million on dividendsZoom Enterprises expects that one year from now it will pay a total dividend of S5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on
dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and it has 5.0 million shares outstanding, what is its share
price today? The price per share is S. (Round to the nearest cent.) and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and
it has 5.0 million shares outstanding, what is its share price today? The price per share is S. (Round to the nearest cent.) forever (so that year 4's dividend will be 4.4% more than $1.25 and so on). If CX's equity cost of capital is 11.6 %,
what is the current price of its stock? The price of the stock will be S. (Round to the nearest cent.) expected to grow at a 3.1% rate, and its share price was $48.96. With the planned expansion, Cooperton's dividends are expected to grow
at a 4.7% rate. What share price woul you expect after the announcement? (Assume that the new expansion does not change Cooperton's risk.) Is the expansion a good investment? The new price for Cooperton's stock will be S. (Round
to the nearest cent.)

Zoom Enterprises expects that one year from now it will pay a total dividend of $5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on dividends
and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and it has
5.0 million shares outstanding, what is its share price today?
The price per share is $. (Round to the nearest cent.)
C
Transcribed Image Text:Zoom Enterprises expects that one year from now it will pay a total dividend of $5.0 million and repurchase $5.0 million worth of shares. It plans to spend $10.0 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 13.0% and it has 5.0 million shares outstanding, what is its share price today? The price per share is $. (Round to the nearest cent.) C
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