Question: Need help finding the value for dividend 5 and the part b! Thank you Company Q's current return on equity ROE is 13%. The firm

Need help finding the value for dividend 5 and the part b!Need help finding the value for dividend 5 and the part b! Thank you

Company Q's current return on equity ROE is 13%. The firm pays out 45 percent of its earnings as cash dividends value per share will grow as Q reinvests earnings. payout ratio-.45). Current book value per share is $63. Book on o ces ROE do n to 1 The cost of Assume that the ROE and payout ratio stay constant for the next four years. After that compe capital is 11.0%. 0% and the payout ratio ncrease to a. What are Q's EPS and dividends in years 1, 2, 3, 4, and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year EPS Dividends 8.78 3.95 $ 4.2:3 4.53 s 9.40 $ 10.08 10.80 11.09 2 4 b. What is Q's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Slook worth per share

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!