Question: Compute the present value of all future expected dividends on your stock if the consensus forecast of the market of all investors changed so that

Compute the present value of all future expected dividends on your stock if the consensus forecast of the market of all investors changed so that the long-term future growth in earnings for your company becomes the same as that for the average stock in the S&P500 index and the systematic risk of your stock changed to that of average stock.

Average S&P 500 P/E ratio =22.71

EPS=4.47

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. Obtain the forecasted future annual earnings per share for your company by entering your company's ticker symbol in the "Find a Symbol" box in the upper middle of the website....

hi i need help!! i have been working on these problems and are not sure what i am doing wrong Investors require a 16% rate of return on Levine Company's stock (that is, r s = 16%). a. What is its...

1. Holt Enterprises recently paid a dividend, D 0 , of $3.25. It expects to have nonconstant growth of 19% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 14%....

An individual has $45,000 invested in a stock with a beta of 0.5 and another $65,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her...

a An individual has $45,000 invested in a stock with a beta of 0.5 and another $35,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her...

Holtzman Clothiers's stock currently sells for $22.00 a share. It just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is expected to grow at a constant rate of 4% a year. What...

1. Weston Corporation just paid a dividend of $1 a share (i.e., D 0 = $1). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected...

eBook Problem Walk-Through Holt Enterprises recently paid a dividend, D 0 , of $1.75. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The firm's...

1. Holt Enterprises recently paid a dividend, D0, of $1.75. It expects to have nonconstant growth of 22% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 14%....

Need the following problem solved via excel. please see attached. Problem 1 Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth...

Over the last decade weve seen a dramatic change in the media to reach consumers, says Linda Glassel, vice president of sports marketing and brand image of Prince Sports, Inc. PRINCE SPORTS IN TODAYS...

For a number of years. the corporation has used the last-in. first-out (LIFO) method of accounting for its steel inventories. In periods of extended inflation. coupled with uncertain supplies of raw...

What type of computer application is used to edit and format a document? Internet Email Word processing Spreadsheets

Clipboard Company's budget committee provides the following information: (Click the icon to view the information.) - X Data Table Read the requirements. Requirement 1. Prepare the schedule of cash...