Zoom Enterprises expects that one year from now it will pay a total dividend of $49 million and repurchase $4.9 million worth of shares it plans to spend $9.8 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases If Zoom's equity cost of capital is 12.5% and it has 54 million shares outstanding, what is its share price today?
Zoom Enterprises expects that one year from now it will pay a total dividend of $49 million and repurchase $4.9 million worth of shares it plans to spend $9.8 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases If Zoom's equity cost of capital is 12.5% and it has 54 million shares outstanding, what is its share price today?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares It plans to spend $9.8 million on dividends
and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases If Zoom's equity cost of capital is 12 5% and it has 5 4
million shares outstanding, what is its share price today?
The price per share is $ (Round to the nearest cent)
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