Question: Can someone help me with these please. 2. Analysts expect to have earnings per share of $9.10 for the coming year (year 1). Target intends

 Can someone help me with these please. 2. Analysts expect to

Can someone help me with these please.

2. Analysts expect to have earnings per share of $9.10 for the coming year (year 1). Target intends to invest heavily in the near term and therefore plans to retain and reinvest 53% of its earnings for the next three years (years 1, 2 and 3). For the next two years (years 4 and 5), retention and reinvestment is anticipated to decrease, with Target expected to retain 45% of its earnings. After that (year 6 onwards) the retention rate is expected to drop to 25% and remain that way. Target's new investments are expected to generate a return of 25% per year. Target's equity cost of capital is estimated to be 11.0%. a. Estimate Target's dividends in years 1-6 using this information. b. Estimate Target's share price in year 5 using this information. c. Estimate Target's stock price today using this information and your answers to a and b. d. Target's closing stock price on 3/1/2023 was $162.40. Suppose you are not confident in the estimate of the long-term retention rate for year 6 onwards from above and therefore ignore it. What would Target's 1-year forward price to earnings ratio in year 5 (i.e. PE ratio based on year 5 price and year 6 expected earnings) in order for Target's stock price to equal $162.40

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