Question: by looking table can you solve these two question? please dont use excel!!! begin{tabular}{|l|r|} hline multicolumn{2}{|c|}{ Rivaz Corporation } hline Net Income & 2005

\begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Rivaz Corporation } \\ \hline Net Income & 2005 \\ \hline Dividends & $3,000 \\ \hline Total Assets - 12/31/05 & $1,000 \\ \hline Total Liabilities - 12/31/05 & $35,000 \\ \hline Number of shares outstanding & $21,225 \\ \hline Cost of Equity & 1,000 \\ \hline \end{tabular} 39. Net income is expected to increase by 10% for the next year, and dividend payout ratio is expected to remain constant. After 2006, retained earnings are expected to decrease to zero. Using the residual income method what is the value per share of Rivaz stock as of 12/31/05 ? A. $15.25 B. $15.16 C. $14.38 D. $13.77 40. Using the dividend discount model, assuming dividends grow at 10% per year for the next two years and at 5% thereafter, what is the value per share of Rivaz Corporation at 12/31/05 ? A. $16.61 B. $16.51 C. $16.42 D. $14.87
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
