Question: please help PART TWO 3 points each. Show your work. - $8.50 eps 1. Chucky Cheese, a children's hands-on activity center, has a Book Value
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PART TWO 3 points each. Show your work. - $8.50 eps 1. Chucky Cheese, a children's hands-on activity center, has a Book Value of $31,200,000 with 600,000 shares outstanding. This past Monday it announced earnings of $5,040,000 for the past year. What are: book value-per-share 040,000 - EPS = ROE 600;000 BU- 16. 1590 600,000 2. Chucky retained none of the earnings. As of yesterday (Tuesday), investors expected that policy to contin 3),20 0,00 they are optimistic, given the economy's recovery and society's renewed affinity for children, hence add 1 recent ROE when assessing Chucky's future. If they apply a discount rate of 10%, what was the stock pric yesterday? (Hint: Use DDM) 31, 200,000 $62) ROT- 5,040,000 wew ROFC 3. Today, Wednesday, Chucky surprised investors and announced they will begin paying out 50% of earning dividends. Investors continue to use the same (new) ROE as they did yesterday. However, now that the is more risky, they add 3% to the discount rate. What is the new price-per-share today? (Hint: use the Go Growth Model.) Moe purchased Chucky Cheese shares yesterday and sold them today. What is his (unannualized, or hol period) ROI? Larry did the same as Moe, but used margin, putting up 60% of his own funds. What was his ROI? PART TWO 3 points each. Show your work. - $8.50 eps 1. Chucky Cheese, a children's hands-on activity center, has a Book Value of $31,200,000 with 600,000 shares outstanding. This past Monday it announced earnings of $5,040,000 for the past year. What are: book value-per-share 040,000 - EPS = ROE 600;000 BU- 16. 1590 600,000 2. Chucky retained none of the earnings. As of yesterday (Tuesday), investors expected that policy to contin 3),20 0,00 they are optimistic, given the economy's recovery and society's renewed affinity for children, hence add 1 recent ROE when assessing Chucky's future. If they apply a discount rate of 10%, what was the stock pric yesterday? (Hint: Use DDM) 31, 200,000 $62) ROT- 5,040,000 wew ROFC 3. Today, Wednesday, Chucky surprised investors and announced they will begin paying out 50% of earning dividends. Investors continue to use the same (new) ROE as they did yesterday. However, now that the is more risky, they add 3% to the discount rate. What is the new price-per-share today? (Hint: use the Go Growth Model.) Moe purchased Chucky Cheese shares yesterday and sold them today. What is his (unannualized, or hol period) ROI? Larry did the same as Moe, but used margin, putting up 60% of his own funds. What was his ROI
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