Calculate dividend payout ratio from the following data Xerxes Corporation In his analysis of the stock of
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate dividend payout ratio from the following data
Transcribed Image Text:
Xerxes Corporation In his analysis of the stock of Xerxes Corporation, Weatherspoon observes that it has a dividend of $2.00 per share and a stock price of $51.98. Two analyst interns have offered estimates of the company's required rate of return and dividend growth rate, as shown in Exhibit 4. Exhibit 4: Xerxes Corporation Require Rate of Return and Dividend Growth Rates (Estimates) Intern 1 Required rate of return 8.3% Growth rate, first four years 5.0% Growth rate after four years 3.6% Intern 2 7.8% 4.8% 4.0% Xerxes Corporation In his analysis of the stock of Xerxes Corporation, Weatherspoon observes that it has a dividend of $2.00 per share and a stock price of $51.98. Two analyst interns have offered estimates of the company's required rate of return and dividend growth rate, as shown in Exhibit 4. Exhibit 4: Xerxes Corporation Require Rate of Return and Dividend Growth Rates (Estimates) Intern 1 Required rate of return 8.3% Growth rate, first four years 5.0% Growth rate after four years 3.6% Intern 2 7.8% 4.8% 4.0%
Expert Answer:
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately were overhauled, installed, and started operating. The machines...
-
You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,000 and is expected to run for six years; model B is more...
-
The Chapter Problem is based on observations of cars with rear license plates only in states with laws that require both front and rear license plates. Work together in groups of three or four and...
-
Discuss the following concepts: preservation of life with limits, euthanasia, advance directives, futility of treatment, withholding and withdrawal of treatment, and do-not-resuscitate orders.
-
Instar Company has several investments in other companies. The following information regarding these investments is available at December 31, 2010. 1. Instar holds bonds issued by Dorsel Corp. The...
-
For Kosko Company, actual sales are $1.218,000 and break-even sales are $962,220. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety Margin of safety...
-
H ALL 1 2 3 2. Simple Matrix Summation Given an n x m matrix, a, where each a(i, j) is the value of the cell at the intersection of row i and column j, create another n x m matrix, b, using the...
-
Which of the following bases exhibit negligible behavior as a base? CN NH3 F Br CH3CO2 HSO4 All of the negligible bases listed above are the conjugate bases of choose your answer. . This means that...
-
Under US GAAP, a lessors reported revenues at lease inception will be highest if the lease is classified as: A. a sales-type lease. B. an operating lease. C. a direct financing lease.
-
CROCO S.p.A. sells an intangible asset with a historical acquisition cost of 12 million and an accumulated depreciation of 2 million and reports a loss on the sale of 3.2 million. Which of the...
-
Low quality earnings most likely reflect: A. low-quality financial reporting. B. company activities which are unsustainable. C. information that does not faithfully represent company activities.
-
A lessor will record interest income if a lease is classified as: A. a capital lease. B. an operating lease. C. either a capital or an operating lease.
-
Which of the following will cause a company to show a lower amount of amortization of intangible assets in the first year after acquisition? A. A higher residual value B. A higher amortization rate...
-
You have built the following interest rate tree for the next 3 years Time 1 (%) Time 2 (%) Time 3 (%) I3hh = 5.06 I2h = 3.83 I1 = 2.01 I3hl = i3lh = 4.16 I2l = 1.51 13ll = 3.8 You are interested in...
-
Catherine (aged 42) and Johnson (aged 45) have been married for 12 years. Johnson is a project manager of an event company at a monthly salary of $55,000 with an additional one-month salary of...
-
FinCorp Inc. is exploring the risk of different portfolio allocations between two stocks. Complete the followingtable. Case Case 2 Weight in stock 1 Weight in stock 2 Standard deviation of stock 1 |...
-
Why is the efficient utilization of net working capital important?
-
A firm follows a strict residual dividend policy. This firm will have profits of $500,000 this year. After screening all available investment projects, the firm has decided to take three out of the...
-
Understanding the Feds actions that are needed to stabilize the interest rate The diagram below shows three different money demand curves and a target interest rate i*. Fill in the table below using...
-
This section looks at US recessions over the past 60 years. To work out this problem, first obtain quarterly data on US output growth for the period 1960 to the most recent data from www.bea.gov....
-
This question asks you to examine the movements of investment and consumption before, during and after the recession of 2001. It also asks you to consider the response of investment and consumption...
Sustainable Development An Appraisal From The Gulf Region 1st Edition - ISBN: 1785333534 - Free Book
Study smarter with the SolutionInn App