Question: n 2019 Value $6.41 Consider the following information which relates to a given company Item Earnings Per Share Price Per Share (Common Stock) Book Value
n 2019 Value $6.41 Consider the following information which relates to a given company Item Earnings Per Share Price Per Share (Common Stock) Book Value (Common Stock Equity) Total Common Stock Outstanding Dividend Per Share $41.02 on $6231 millon 2.7 million $44 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.06% in the future. or possibly 7.2% for the next 2 years and 5.84% 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 8.51% to 10.81%. Currently, the risk-free rate is 5.17% Required: Assuming no growth in future dividends, and a required return of 16.8% find the value per share of the firm's stock (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
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