Question: its the same question with indepent inputs, i need the answers for all (A-G) please. Consider the following information which relates to a given company:

its the same question with indepent inputs, i need the answers for all (A-G) please.  its the same question with indepent inputs, i need the answers
for all (A-G) please. Consider the following information which relates to a
given company: Item 2019 Value Earnings Per Share Price Per Share (Common
Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per
Share $6.78 $38.99 $60 Million 2.3 Million $3.73 Analysts expect that the
company could maintain a constant annual growth rate in dividends per share
of 6% in the future, or possibly 8% for the next 2

Consider the following information which relates to a given company: Item 2019 Value Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $6.78 $38.99 $60 Million 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (a) Determine the firm's current book value per share. Consider the following information which relates to a given company: 2019 Value $6.78 Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $38.99 $60 Million 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (b) Determine the firm's P/E ratio. Consider the following information which relates to a given company: Item 2019 Value $6.78 $38.99 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $60 Million 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (c) Determine the current required return for the firm's stock. Consider the following information which relates to a given company: 2019 Value Item $6.78 $38.99 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $60 Million 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (d) Determine the new required return for the firm's stock. Consider the following information which relates to a given company: Item 2019 Value $6.78 $38.99 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share Million $60 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (e) Assuming no growth in future dividends, and a required return of 16.75%, find the value per share of the firm's stock. Consider the following information which relates to a given company: Item 2019 Value $6.78 $38.99 Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $60 Million Million 2.3 $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (t) Assuming a constant annual 6% growth rate in future dividends, find the value per share of the firm's stock. The required return is 16.75%. Consider the following information which relates to a given company: 2019 Value Item Earnings Per Share $6.78 $38.99 $60 Million Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share 2.3 Million $3.73 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6% in the future, or possibly 8% for the next 2 years and 7% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 9% to 10%. Currently, the risk-free rate is 6%. Required: (g) Assuming a constant annual 8% growth rate in dividends per share over the next two years and 7% thereafter, find the value per share of the firm's stock. The required return is 16.75%

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!