## Question

###### In practice, a common way to value a share of stock when a company pays dividends...

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE o. Suppose a company just paid a dividend of $1.17. The dividends are expected to grow at 12 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return is 12 percent. What are the projected dividends for each of the next five years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.) Dividend Year 1 Year 2 Year 3 Year 4 Year 5 What is the EPS in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.) EPS in 5 years What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.) Stock price in 5 years What is the stock price today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.) Stock price today

## Answers

#### Similar Solved Questions

1 answers

##### How do you find the limit of 7 as x approaches 8, using inspection

How do you find the limit of 7 as x approaches 8, using inspection?...

1 answers

##### You just started working for a pediatric medical office and need to file claims using the...

You just started working for a pediatric medical office and need to file claims using the new ICD10 codes. Previous to this you worked for a group of cardiologists. As you begin to complete the coding you look through your code book but can find on section on pediatrics. Why is this? What do you do?...

1 answers

##### Pls help step by step which functional groups are present. 3000 1000 2000 Wavenumber (cm-1) Alcohol...

pls help step by step which functional groups are present. 3000 1000 2000 Wavenumber (cm-1) Alcohol Carboxylic acid Aldehyde Carbonyl group sp-C-H bonds alkane C-H bonds...

1 answers

##### What is the principle b TO time value of money? CY Select one: O a. Projects...

What is the principle b TO time value of money? CY Select one: O a. Projects with more risk have a lower discount rate. b. Money tomorrow is worth more than money today. O c. Cash in and cash out. d. Money today is worth more than money tomorrow....

1 answers

##### )Which of the following is a tertiary amine? H3C (CH3CH2)2NH 3 CH3CH2)3N (CH3CH2)3NH

)Which of the following is a tertiary amine? H3C (CH3CH2)2NH 3 CH3CH2)3N (CH3CH2)3NH...

1 answers

##### Ive already answered the x & y components can you fill in the rest of the...

ive already answered the x & y components can you fill in the rest of the blanks of the two charts remaining please? the first page is for reference. thank you!! Lab 2 Vector Components and Vector Addition Lab Vectors A through H are given below Name: B-20 m A-15 m 30° 28° C-18 m 390...

1 answers

##### Question 19 < An airplane is heading north at an airspeed of 800 km/hr, but there...

Question 19 < An airplane is heading north at an airspeed of 800 km/hr, but there is a wind blowing from the southeast at 40 km/hr. The plane will end up flying degrees off course km/hr The plane's speed relative to the ground will be Question 20 > Calculate ( – 4 – 2:)? Give y...

1 answers

##### Munoz Camps, Inc. leases the land on which it builds camp sites. Munoz is considering opening...

Munoz Camps, Inc. leases the land on which it builds camp sites. Munoz is considering opening a new site on land that requires $3,750 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Munoz expects for...

1 answers

##### Consider the function f(x) = 2x 123? slope of the function on this interval. 72c +...

Consider the function f(x) = 2x 123? slope of the function on this interval. 72c + 1 on the interval [ – 4, 8]. Find the average or mean By the Mean Value Theorem, we know there exists a c in the open interval ( - 4,8) such that f'@) is equal to this mean slope. For this problem, there are...

1 answers

##### Meridional rays. Determine the shape of the meridional rays for a cylindrical optical fiber that has...

Meridional rays. Determine the shape of the meridional rays for a cylindrical optical fiber that has the refractive index n (2- 2) n2(r) The coordinate r is the distance from the axis of the fiber Meridional rays. Determine the shape of the meridional rays for a cylindrical optical fiber that has t...

1 answers

##### Translate the following argument into symbolic form, and test for validity using a full or indirect...

Translate the following argument into symbolic form, and test for validity using a full or indirect truth table. (4 points) You can get partial credit for an incorrect translation if the truth table is correct for your translation. 3. If your car's headlights malfunction, then if you're driv...

1 answers

##### Help Save & Exit Submit * You received no credit for this question in the previous...

Help Save & Exit Submit * You received no credit for this question in the previous attempt View previous attempt Exercise 9-16 Flexible Budgets in a Cost Center (LO9-1, LO9-2] Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are pre...

1 answers

##### X Company is planning to launch a new product. A market research study, costing $120,000, was...

X Company is planning to launch a new product. A market research study, costing $120,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $164,000 in each of the first two years and $101,000 in each...

1 answers

##### Discussion Questions 1.What were the key factors behind Netflix’s success in the first era (1997–2006); second...

Discussion Questions 1.What were the key factors behind Netflix’s success in the first era (1997–2006); second era (2007–2012); and, third era (2013–present)? 2.Use VRIO analysis to identify the capabilities that contributed to Netflix’s sustainable competitive advantag...

1 answers

##### For this question you must give all answers rounded correct to exactly 3 significant figures (ins...

For this question you must give all answers rounded correct to exactly 3 significant figures (instead of decimal places). Recall that leading zeros are not significant (for example 0.0011 has 4 decimal places, but only 2 significant figures). To obtain more decimal places in the numbers Matlab gives...

1 answers

##### 1. Influence of Working Distance (WD) (2 marks) Fig 1 (a) and (b) are SEM secondary electron (SE)...

1. Influence of Working Distance (WD) (2 marks) Fig 1 (a) and (b) are SEM secondary electron (SE) images for a composite material with carbon fibres taken with different WD. Interpret the images and explain the influence of WD. a) c-fiber composite, WD-8mm, x500 50 Hm c-fiber composite, WD-24mm, x50...

1 answers

##### A: What are the basic assumptions associated with a perfectly competitive market? B: What are the...

A: What are the basic assumptions associated with a perfectly competitive market? B: What are the basic assumptions associated with a pure monopoly market? C: For a given level of demand, which market would have the lower price? D: for a given level of demand, which market would have the higher leve...

1 answers

##### Hi, anyone can help me with this question? The answer for i) is p = 19/36,...

Hi, anyone can help me with this question? The answer for i) is p = 19/36, q = 17/36, j =10, a = 15. The answer for ii) is is 0.1729. I need a full working for this question. Q10. In each game, 2 unbiased normal 6-sided dice are tossed. If none of the dice shows a score of "1" and the total ...