What is q stock worth per share

Assignment Help Basic Statistics
Reference no: EM132000311

Company Q's current return on equity (ROE) is 13%. The firm pays out 45 percent of its earnings as cash dividends. (payout ratio = .45). Current book value per share is $53. Book value per share will grow as Q reinvests earnings.

Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 11.0% and the payout ratio increases to .70. The cost of capital is 11.0%.

a. What are Q's EPS and dividends in years 1, 2, 3, 4, and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Years EPS Dividends

1

2

3

4

4

b. What is Q's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132000311

Questions Cloud

What price would you be willing to pay for share : What price would you be willing to pay for a share of Acap stock? today,
What is expected rate of return year on average : If you set aside $10,000 every year,how do you invest? What is your expected rate of return each year on average?
Estimate pharmaset value to fosbeck : Mergers and Acquisitions. Target (Pharmaset) Valuation Pharmaset's management would be open to the sale in the valuation range of $ 20 to 24 Billion.
What are the limitations of prevention versus enforcement : How are these efforts similar to and different from the methods used to prevent or mitigate routine criminal activity?
What is q stock worth per share : What is Q's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Prepare a outline of your san francisco city council budget : Prepare a 350- to 700-word outline of your San Francisco City Council Budget Proposal.
What is the current price of its stock : If CX's equity cost of capital is 11.7 %, what is the current price of its stock?
Subsequent amounts for amortization of the principal : Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium?
What is the current stock price : If next year's dividend is $10 and the market capitalization rate is 14%, what is the current stock price? (Round your answer to 2 decimal places

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd