Dividends and earnings per share expected to grow

Assignment Help Financial Management

Reference no: EM131332151

Maynard Steel plans to pay a dividend of $ 3.16 this year. The company has an expected earnings growth rate of 4.4 % per year and an equity cost of capital of 10.7%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase? shares, estimate? Maynard's share price. b. Suppose Maynard decides to pay a dividend of $ $1.03 this year and use the remaining $2.13 per share to repurchase shares. If Maynard's total payout rate remains constant, estimate? Maynard's share price. c. If Maynard maintains the dividend and total payout rate in (b), at what rate are? Maynard's dividends and earnings per share expected to grow?

Reference no: EM131332151

Questions Cloud

Property taxes-fire insurance and all other annual costs : Mr. Sam K. Jones, a successful businessman, is considering erecting a small building on a commercial lot. A local furniture company is willing to lease the building for $9000 per year, paid at the end of each year. It is a net lease, which means the ..

Discuss about grievances and its effect on justice system : Grievances and the effect it has on the criminal justice system from a supervisory/ management point of view.

Financial and investment decisions making : Compare and differentiate between the financial and investment DECISIONS MAKING?

Bond equivalent yield is semi-annually compounded : What is the price of a T-Bond with exactly 24.5 years to maturity and coupons with rate 5.875% paid semi-annually? Its yield is 6.5% BEY (Bond Equivalent Yield is semi-annually compounded).

Dividends and earnings per share expected to grow : Maynard Steel plans to pay a dividend of $ 3.16 this year. The company has an expected earnings growth rate of 4.4 % per year and an equity cost of capital of 10.7%. at what rate are Maynard's dividends and earnings per share expected to grow?

Tenant owe the landlord in expense : A tenant has a gross lease with an ‘‘expense stop''of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $700,000, and the tenant rents 25,000 SF, then how much does the tenant owe the landlord ..

What is maximum initial cost the company : Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.8 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. What is the maximum initial cost the com..

After-tax cash flow from the sale : Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation take..

Share of stock has a dividend : A share of stock has a dividend of D0 =$5. The dividend is expected to grow at a 20 percent annual rate for the next 3 years, and then at a long- run normal growth rate of 5 percent forever. If investors require a 10 percent return on this stock, wha..

User Account

All Pages