Use the following information to answer Questions 14 - 17.Hupta Corporation has the following financial numbers.2005$ 6,000$ 2,000$50,000$20,000Net incomeDividendsTotal assets-12/31/05Total liabilities-1231 o5Number of shares outstandingCost of equity1,00010%Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. Alter 2006, residual earnings are expected towearnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05?Oa. 533.60Ob.S33.27OC 532.73Od. $30.00QUESTION 15Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05?Oa. 542.18O b. $40.00OG $48 20O d.$44.00QUESTION 16Following Question 15, what is the price-to-book ratio at 12/31/05?Oa 133Ob.141Oc147

14. revised net income= 6000*110% = $ 6600 residual earnings = net income - bookvalue *cost of…

Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

Use the following information to answer Questions 14-17. Hupta Corporation has the following financial numbers. 2005 $ 6,000 Net income Dividends $ 2,000 Total assets-12/31/05 $50,000 Total liabilities-12/31/05 $20,000 Number of shares outstanding 1,000 Cost of equity 10% Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, residual earnings are earnings-based valuation method, what is the value per share of Hupta stock as of 12/31/05? a. $33.60 Ob.$33.27 Oc. $32.73 Od. $30.00 QUESTION 15 Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05? a. $42.18 b. $40.00 Oc$48 20 Od. $44.00 QUESTION 16 Following Question 15, what is the price-to-book ratio at 12/31/05? Oa. 1.33 Ob.141 Q147

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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