ToolWerks Company is expected to earn $10 million next year There are 2 million shares outstanding and the company uses a dividend payout ratio of 40 percent The required rate of return for companies like ToolWerks is 8 percent The current share price of ToolWerks is $75 a What are the expected ear...

a The total earnings of ToolWerks is 10 million The EPS i ...

ToolWerks Company is expected to earn $10 million next year. There are 2 million shares outstanding and

Question:

ToolWerks Company is expected to earn $10 million next year. There are 2 million shares outstanding and the company uses a payout ratio of 40 percent. The required rate of return for companies like ToolWerks is 8 percent. The current share price of ToolWerks is $75.
a. What are the expected earnings per share for ToolWerks?
b. What are the expected dividends per share for ToolWerks?
c. What is the growth rate expected for ToolWerks?
d. What is the present value of growth opportunities for this firm? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...