Question: these are five separate questions that I need help with please, thank you! question 1 (Measuring growth) If Pepperdine, Inc.'s retum on equity is 18
these are five separate questions that I need help with please, thank you!
question 1
(Measuring growth) If Pepperdine, Inc.'s retum on equity is 18 percent and the management plans to retain 64 percent of earnings for investment purposes, what will be the firm's growth rate? The firm's growth rate will be D%. {Round to two decimal places.) (Valuing common stock) Wayne, Inc.'s outstanding common stock is currently selling in the market for $12. Dividends of $1.84 per share were paid last year, return | on equity is 15 percent, and its retention rate is 24 percent. a. What is the value of the stock to you, given a required rate of retum of 19 percent? b. Should you purchase this stock? a. Given a required rate of return of 19 percent, the value of the stock to you is $|:_ (Round to the nearest cent.) (Bond valuation) Enterprise, Inc. bonds have an annual coupon rate of 9 percent. The interest is paid semiannually and the bonds mature in 13 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 12 percent, what is the value of the bond? What is its value if the interest is paid annually? a. The value of the Enterprise bonds if the interest is paid semiannually is 5 804.95 . (Round to the nearest cent.) b. The value of the Enterprise bonds if the interest is paid annually is $|D (Round to the nearest cent.) (Related to Checkpoint 10.1) (Valuing common stock) Header Motor, Inc., paid a $2.74 dividend last year. At a constant growth rate of 4 percent, what is the value of the common stock if the investors require a 12 percent rate of return? The value of the common stock is :l (Round to the nearest cent.) (Related to Checkpoint 10.1) (Valuing common stock) Header Motor, Inc., paid a $3.50 dividend last year. At a constant growth rate of 5 percent, what is the value | of the commen stock if the investors require a 20 percent rate of return? The value of the common stock is SD_ (Round to the nearest cent.)
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