A company has 28 shares outstanding. In the last fiscal year earnings were $374 and the company

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A company has 28 shares outstanding. In the last fiscal year earnings were $374 and the company has a payout policy where it pays out 46% of earnings out as dividends and uses 30% of earnings for share repurchases.

If investors expect the earnings to grow at 3% per year and the equity cost of capital is 12%, what is the company's expected share price?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jan 10, 2021 03:21 PM

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A company has 28 shares outstanding. In the last fiscal year earnings were $374 and the company

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Dividend earnings Dividend pay out ratio 37446 17204 ... View the full answer

Principles of Finance

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