Using information below, calculate value of one share of company X: 2021 2022 2023 2024 EPS growth rate (%) 15 12 10 6 Dividend per share (% of EPS) 20 30 40 50 The company has net profit after tax of $12.32 million and 4 million shares outstanding in 2020. The value of the company (that is the terminal value) at the end of 2024 is expected to be 6 times of earnings of 2024. The required return on equity is 12 percent

Using information below, calculate value of one share of company X: 2021 2022 2023 2024 EPS growth rate (%) 15 12 10 6 Dividend per share (% of EPS) 20 30 40 50 The company has net profit after tax of $12.32 million and 4 million shares outstanding in 2020. The value of the company (that is the terminal value) at the end of 2024 is expected to be 6 times of earnings of 2024. The required return on equity is 12 percent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For XYZ Corporation, the book value per share at the end of 2021 Is 31.46, ROI is .1, and earnings per share for 2022 (at the end of the year) are 4.57. What is the value of residual earnings per share for 2022? O2.38 1.42 O 3.57 O 1.13
Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and consistent dividend payer. From 2018 through 2022, Seagate paid the following per-share dividends: Year Dividend per share 2022 2021 2020 2019 2018 $2.56 2.22 1.88 1.19 1.56 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 20% required rate of return to find the value of Seagate's stock immediately after it paid its 2022 dividend of $2.56. The value of Seagate's stock is $. (Round to the nearest cent.)
Pls use formula to calculate r = (FV/PV)(1/t) - 1 (b)Shares in Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return
devu
Assume that the required return for Four Season's stock is 12 percent, and the company has paid the following dividends. Under the constant growth model valuation, what is the value of Four Season's stock? Year Dividend per share 2020 $1.32 2019 $1.21 2018 $1.16 2017 $1.12 a. $21.82 b. $11.00 c. $15.11 d. $19.80
From the financial statements of Company A for the year 2022, we read the following information: Book value of equity = $100 millions, Net income = $20 millions. Distributed Cash dividend = $12 millions. There are 10 millions common shares of the company in circulation. Answer the following questions, assuming the required return of 10%. What would be its expected value at the end of 5 years, namely P5? a. 26.32 b. 15.62 c. 17.63 d . 10.65
Blake Company had net income of P600,000 in 2021. Net income has grown at a 5 percent annual rate. Dividends in 2021 were P200,000. In 2022, the net income was P700,000. This of course exceeded the 5 percent annual growth rate. It is expected that earnings will return to a 5 percent growth rate in later years. What should the dividends paid out in 2022 be, assuming (a) a stable dividend payout ratio of 20 percent, and (b) a stable peso dividend policy is maintained? CHOOSE THE CORRECT LETTER OF ANSWERA. (a)P140,000.00 and (b) P110,000.00B. (a)P110,000.00 and (b) P210,000.00C. (a)P120,000.00 and (b) P110,000.00D. (a)P140,000.00 and (b) P210,000.00E. None of the above
Nikul
Parcel Corporation expects to pay a dividend of $5.15 per share next year, and the dividend payout ratio is 50 percent. If dividends are expected to grow at a constant rate of 8 percent forever, and the required rate of return on the stock is 13 percent, calculate the present value of growth opportunities. Multiple Choice O O O $103.00 $79.23 $23.77 $71.85
If XYZ Company has 2023 earnings per share of $3 and its growth rate is 9%, how long will it take XYZ to double its earnings per share?
Suppose a company will be in business for only the next 10 years and pays an annual dividend of $1.75 for those ten years. What is the present value of a share of stock for this company if we want a 9% return on the stock? O A. $19.08 O B. $15.97 OC. $26.59 O D. $11.23
Given the information below for Seger Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Year Price EPS CFPS SPS 2016 $81.90 $81.90 3.20 7.67. 64.00 Using PE ratio Using P/CF ratio Using P/S ratio 2017 $ 87.80 3.91 8.56 69.00 2018 $ 86.50 4.71 8.95 68.40 Share Price 2021 2019 2020 $84.00 $ 105.50 $ 120.90 7.40 8.40 12.04 13.26 83.10 91.10 5.41 10.52 71.90