Phobis Co is considering a bid for Danoca Co. Both companies are stock-market listed and are in the same business sector. Financial information on Danoca Co, which is shortly to pay its annual dividend, is as follows: Number of ordinary shares 5 million Ordinary share price (ex div basis) $3.30 Earnings per share 40.0c Proposed payout ratio 60% Dividend per share one year ago 23.3c Dividend per share two years ago 22.0c Average sector price/earnings ratio 10   Calculate the market capitalisation of Danoca Co. A $14.75m B $16.50m C $5.00m D $20.00m

Q: Paisios Ltd paid a $4.00 dividend per share recently. Paisios normally pays dividends once year.…

A: Dividend is the part or share of profits being distributed to the shareholders. It can be in form of…

Q: Determine the value of one ordinary share of Carter & Briggs using: Dividend valuation method.  To…

A: Given: Year 0 dividend = £120m Dividend growth rate = 4% Cost of capital = 12%

Q: metallica bearing incorported is a startup company. no dividends will be paid on the stock over 10…

A: b) Calculation of bond price now  PV=FV/(1+𝑟)𝑛 =$184.375/(1+0.1325)^10 =184.375/3.47042 =$53.13…

Q: Panyaroad Plc has just paid a dividend of USD 8 per share. The market value of share is USD 93. The…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Assume you have been appointed a a Director of Delta Holdings and that you are to calculate the cost…

A: Cost of ordinary shares = D0×1+gP0+g Where, D0 is current dividend per share g is growth rate P0 is…

Q: ABC Corp. issued new shares with a par value of P1,000, issue price of P1,200 and net proceeds of…

A: We need to use constant or Gordon growth model to calculate the cost of retained earning. The…

Q: Sandhill Corporation's common shares are trading at $25 per share and paid a dividend of $2.00 per…

A: Common Stock -Common stock represents a portion of a company's ownership. The percentage is…

Q: Jumbuck Exploration has a current stock price of $2 and is expected to sell for $2.10 in one years…

A: Here, Current stock price (P0) = $2 Expected price after 1 year (P1) = $2.10 Dividend (D) = $0.23

Q: After a 5-for-2 stock split, the Penguin Company paid a dividend of $1.25 per new share, which…

A: In stock split companies divide large shares into very small shares so that it will be easy for…

Q: Complete all questions below relating to Sharedspace Ltd, a listed company in the commercial…

A: Dividend Discount model is also known as dividend growth model. Under this method current price can…

Q: Walker Machine Tools has 6.3 million shares of common stock outstanding. The current market price of…

A:

Q: Last year, Luka Dončić paid $40.71 for shares of BioSteel. Afterward, he received a dividend of…

A: Dividend yield is dividend per share divided by market price at time of purchase.

Q: First Time Corporation conducted an IPO, issuing 2 million common shares with a par value of P0.25…

A: Calculation of equity account and market capitalization end of first year are as follows

Q: ABC company has a dividend payout ratio of 40% and has maintained this payout ratio for several…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: scn.3

A: The objective of the question is to calculate the current share price of Art Plc. considering the…

Q: The following information relates to the acquisition of M plc by D plc: Recent dividend of M plc:…

A: When a company buys most of the shares of another company, it is called acquisition. Acquisition…

Q: The firm of X Ltd. purchased a share of ABC Ltd. common stock exactly one year ago for Ksh. 45.…

A: Purchased Price = 45 Selling Price = 85 Dividend = 2.40 Return = [ Selling Price - purchased Price +…

Q: Schaeffer Shippers announced on May 1 that it will pay a dividend of $5.00 per share on June 15. The…

A: in this situation stock price should fall by ..$5.00 *(1-0.33).= 3.35

Q: Today, one share of Smith & Wesson Brands Inc (ticker symbol: SWBI) sells for $46.60. SWBI is…

A: Current price of a stock is the present value of the future cash flows from the stock. The dividend…

Q: Miles Co is considering a bid for Stone Co. Both companies are stock-market listed and are in  the…

A: Ordinary Shares: Ordinary shares, otherwise called equity shares, are characterized as portions of…

Q: APE company has 6.7 million shares of common stock outstanding. The current market price common…

A:

Q: 4. Luke A. Manufacturing paid a dividend yesterday of $5 per share (D0= $5). The dividend is…

A: According to the Gordon growth model, the value of an equity share is the present value of dividends…

Q: West Wind, Inc. has 4,900,000 shares of common stock outstanding with a market value of $75 per…

A: Earnings per share is calculated using following equation Earnings per share  = Net income / Number…

Q: X Corp paid dividends to OS last year by 2.20 per share. The current market price of Ordinary Shares…

A: Cost of equity (Ke) :— It is rate of return expects by common equity shareholders on their…

Q: NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that…

A: Annual dividend = D = $1.50 Equity cost of capital = Ke = 0.12 or 12%   We will use dividend…

Q: The ordinary shares of Emerald Ltd paid a dividend of $1.55 last year. Dividends are expected to…

A: Dividend in Year 0 = 1.55 Growth Rate = 6% Required Return = 10.5% Current Market Price of Share =…

Q: Investors expect that Aviation Aircraft Parts, will pay a dividend of $2.00 in the coming year,…

A: Intrinsic value per share describes the true value of the asset by adding the present value of all…

Q: Consolidated Pasta is currently expected to pay annual dividends of $10 a share in perpetuity on the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Victoria's Rag Patch, a pricy boutique chain, recently paid an annual dividend of $0.80 a share and…

A: Formula: Cost of equity = (Expected dividend / Price ) + growth rate

Q: Sun Instruments expects to issue new stock at $36 a share with estimated flotation costs of 9…

A: Stock price = $36 Flotation cost = 9% Current dividend = $1.70 Growth rate = 3%

Q: GoodTimes Inc.’s expected earnings per share are $2.00, $3.00, and $6.00 for the following three…

A: Earnings per share in year 1 = e1 = $2Earnings per share in year 2 = e2 = $3Earnings per share in…

Q: Jumbuck Exploration has a current stock price of $2.35 and is expected to sell for $2.47 in one…

A: In this question, we are required to calculate the equity cost of capital.

Q: Flute Ltd. common shares have a required rate of return of 18 percent. The company anticipates…

A: When the company receives profits and distributes them among the shareholders. That share of profit…

Q: Hassel Inc.'s would like to undertake a policy of paying out 45% of its income. Hassel’s latest net…

A: The portion of the earnings that are distributed among the common shareholders is termed as the…

Q: Sun Instruments expects to issue new stock at $38 a share with estimated flotation costs of 7…

A: Current stock price (P0) = $38Floatation cost (f) = 7% or 0.07Current Cash Dividend (D0) =…

Q: Hammer Inc. just paid its common equity owners a dividend of $2.5. Hammer's management indicated in…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: Red, Incorporated, Yellow Corporation, and Blue Company each will pay a dividend of $1.50 next year.…

A: As the growth rate is constant and lower than the required return, we can apply the constant…

Q: Walker Machine Tools has 6 million shares of common stock outstanding. The current market price of…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: RST Ltd. Is currently selling common stock for $90 par share.  The firm expects to pay cash dividend…

A: Cost of common stock refers to minimum returns required to pay to its shareholders. In other words,…

Q: American Health Systems currently has 7,200,000 shares of stock outstanding and will report earnings…

A: Earnings per share (EPS) is a financial metric used to measure a company's profitability. It is…

Q: A share of stock in Bodah Corporation pays an annual dividend of $5. The current market price is…

A: It is a case of calculating price for the stock for each individual and comparing it with the…

Q: The common stock of Permanent Assurance Corporation currently trades at $40.00 per share, which is…

A: Note: Answer to parts 1-4 is incorrect as the expert has incorrectly taken the dividend value and…

Q: The following financial information is available on the Haverty Company: Current per share market…

A: The dividend discount model considers the cost of equity and expected growth rate to compute the…

Q: What should be the dividend of this “cumulative preferred” compared to the 1% of the ordinary?

A: Cumulative preferred stock implies that if there is unpaid dividend of any year and the company…

Q: The firm of Al Ain and Abu Dhabi purchased a share of LoLo.com common stock exactly one year ago for…

A: Dividend: The dividend is the amount paid to buy the company to its shareholders out of its…