Can you please give me correct answer this financial accounting question? Titan Aero Technologies earned $22 million for the fiscal yearending yesterday. The firm also paid out 35% of its earnings asdividends. The firm will continue to pay out 35% of its earnings asannual, end-of-year dividends. The remaining 65% of earnings isretained by the company for future projects. The company has2.5 million shares of common stock outstanding. The currentstock price is $105. The historical return on equity (ROE) of 14% isexpected to continue in the future.Calculate the required rate of return on the stock for Titan AeroTechnologies.

Step 1: Define Required Rate of ReturnThe Required Rate of Return (RRR) is the minimum return an…

Answered: Titan Aero Technologies earned $22…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Breakaway wealth had net earnings of $336,000 this past year. dividends were paid of $77,280 on the company's book equity of $2,800,000. if Safeway has 175,000 shares outstanding with a current market price of $21 per share, what is the required rate of return?
Soylent Corp expects to generate earnings over the coming twelve months of $$6.656.65 per share (i.e. at t=11). It has a share price today of $$49.2849.28. The firm has a policy of paying out 34.034.0% of its earnings each year as dividends to shareholders and of reinvesting the remaining 66.066.0% into new projects. Reinvested earnings provide a return on new investment of 15.215.2% per annum. However, due to a disappearing customer base, Soylent Corp will soon announce that the firm will begin paying out 69.069.0% of its earnings as dividends, retaining now 31.031.0% for investment in new projects. The return provided by earnings reinvested in new projects will remain at 15.215.2% per annum for the foreseeable future. a) What will be the share price after this announcement? Investors are not expecting the firm to change its payout policy. The share price for Soylent Corp after this announcement will be
Mercury Satellite Corporation earned $20 million for the fiscal year ending yesterday. The firm's policy is to pay out 30 percent of its earnings as dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2 million shares of common stock outstanding. The current stock price is $90. The historical return on equity (ROE) of 15 percent is expected to continue in the future. What is the required rate of return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Sanders, Inc. paid a $3 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends for the foreseeable future. If the firm is expected to generate a 13% return on equity in the future, and if you require a 15% return on the stock, the value of the stock is a) $15.62 b) $29.29 c) $44.92 d) $32.20
At year end, Sampson Company's balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.9 million. If the average P/E multiple in Malta's industry is 16, (and this is an average stock) what should be the price of Sampson's stock? O $50.43 O $46.40 O $44.57 O $41.60
Please can I get detailed step by step workings for this question?
Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, the income statement shows net income of $864,200. The company paid dividends of $466,668 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 22, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price
Columbus Corp. had $380,000 additions to retained earnings for the year. The firm paid out $210,000 in cash dividends, and it has ending total equity of $6.7 million. The company currently has 200,000 shares of common stock outstanding and the stock currently sells for $90 per share. What is the PE ratio? Round it to two decimal places.
Janlea Co. had total net earnings of $158,600 this past year and paid out 60 percent of those earnings in dividends. There are 84,000 shares of stock outstanding at a current market price of $18.43 a share. If the dividend growth rate is 2.8 percent, what is the required rate of return?
The newspaper reported last week that Tisch Enterprises earned $34.07 million this year. The report also stated that the firm’s return on equity is 16 percent. The firm retains 75 percent of its earnings. What will next year's earnings be?
Analysts expect ElectroSoft to generate $99.65141 million of free cash flow at the end of the current year. (Assume that cash flows occur on December 31 and today is January 1.) Analysts expect Electrosoft's cash flow to grow at 3% in perpetuity. Electrosoft has no debt and its shareholders require a return of 11%. There are 153.78293 million shares outstanding, and the shares trade for $8.10. ElectroSoft has announced a stock repurchase. It intends to buy 36.6 million shares at a price of $9 per share. The repurchase will be debt financed. After the repurchase, the company's debt-to-equity ratio will be 1/3 and it will maintain that ratio in perpetuity. The cost of debt is 5% and the tax rate is 35%. Answer the following questions. Part 1 What is the levered cost of equity after the repurchase? (Express your answer in percentage form rounded to one decimal place.) Cost of equity= Part 2 What is the company's WACC after the repurchase? (Express your answer in percentage form rounded to…

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