The common stock of WHJ Corporation pays out 40% of its earnings and dividends, which are expected to be $3 at year-end. The return on retained earnings is 15%, and the required return on stock is 14%. Determine the P/E ratio.
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- Company X is expected to pay an end-of-year dividend of $5 a share. After the dividend its stock is expected to sell at $110. If the market capitalization rate is 8%, what is the current stock price?Best Corporation is expected to pay $.60 next year and $1.10 the following year and $1.25 each year thereafter. If the required return is .14, what is the priice of the stock? $7.40 $2.95 $8.24 $2.22Hoover Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D1= $2.50), and the dividend is expected to grow at a constant rate of 5.50% a year. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from reinvested earnings? Show work in excel.
- BBB plc plans to pay a dividend next year of 41.2p per share and has a cost of equity of 9% per year. BBB plc has a dividend payout ratio of 50% and its EPS (earnings per share) is 80p. What is the ex-div share price of the company?CK Company stockholders expect to receive a year-end dividend of $5 per share and then be sold for $115 dollars per share. If the required rate of return for the stock is 20%. Required: Calculate the current value of the stock.Red, Inc., Yellow Corp., and BlueCompany each will pay a dividend of $2.35 next year. The growth rate in dividendsfor all three companies is 5 percent. The required return for each company’s stockis 8 percent, 11 percent, and 14 percent, respectively. What is the stock price foreach company? What do you conclude about the relationship between the requiredreturn and the stock price?
- A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% O C. 5.52% O D. 22.08%Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of the company's stock?Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to grow by 2.2% every year and the current stock price is $181.5. The company is in the process of issuing new common stock, with flotation costs of 6% of the issue price. What is the flotation cost adjustment? Use 5 decimal places for all input numbers in your calculation.
- BMM Industries pays a dividend of $1.40 per quarter. The dividend yield on its stock is reported at 4.2%. What price is the stock selling at? (Round your answer to 2 decimal places.) Current price $company has stock which costs $45.00 per share and pays a dividend of $2.50 per share this year. The company's cost of equity is 7%. What is the expected annual growth rate of the company's dividends?A company has net earnings of AED 10,000 for the current vear and suppose the company maintai the same earnings for the next year. The company has 1,000 total outstanding shares during the current year. The company decides to buyback 40% of its shares in the following year. Show how this decision will impact the company's earnings per share?