Titan Industries has 217 million shares outstanding and expects earnings at the end of this year of
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Titan Industries has 217 million shares outstanding and expects earnings at the end of this year of $860 million. Titan plans to pay out 50% of its earnings in total, paying 30% as a dividend and using 20% to repurchase shares. If Titan’s earnings are expected to grow by 7.5% per year and these payout rates remain constant, determine Titan’s share price assuming an equity cost of capital of 10%.
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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