Question: **TIME SENSITIVE** please, make sure your answer is correct & solve by 2:30pm thank you so much! AFW Industries has 204 million shares outstanding and

**TIME SENSITIVE** please, make sure your answer is correct & solve by 2:30pm
thank you so much!
**TIME SENSITIVE** please, make sure your answer is correct & solve

AFW Industries has 204 million shares outstanding and expects earnings at the end of this year of $661 milion AFW plans to pay out 53% of its earnings in total, paying 34% as a dividend and using 24% to repurchase shares. If AFW's earnings are expected to grow by 7.5% per year and these payout rates romain constant determine AFW's share price assuming an equity cost of capital of 12.1%. The price per share will be $40.85 (Round to the nearest cont.)

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!

Q:

**TIME SENSITIVE** please, make sure your answer is correct & solve by 2:39pm thank you so much! You have a loan outstanding. It requires making six annual payments of $7,000 each at the end of the...

Q:

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Q:

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Q:

just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question 2..BTW,please focus the every step FINANCE SPOTLIGHT...

Q:

can any expert help me with the below assignment just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question...

Q:

I need help from a Financial expert who is very familiar with exchange rate exposure & payout policy.I will adjust the price as you suggest. For some reason I am not able to do it here. Please be...

Q:

I wanted to ask a question regarding questions 12 and 13, under section 16.4 of the file I uploaded. In question 12, we had to calculate the value of the firm without leverage. In question 13 we had...

Q:

Hoyt, Inc. has estimated current year sales (in millions) for the next four quarters. Q1 $240Q2 $250 Q3 $205 Q4 $350 ? Sales for the 1st quarter next year are projected to be $230.? Accounts...

Q:

Can you please explain me questions 6 and 7 under section 17.6? To be honest I did not understand why the true value of the firm before the repurchase is $3000. I would assume that it is $2500...

Q:

Can't figure out how to calculate FIFO and LIFO for exercise 8-20 on page 15. Problem 3-1 (Part Level Submission) Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of...

Q:

Use the results from Problem 30 in Section 4.1 and Problem 22 in Section 4.2. (a) What proportion of the variability in the length of the right tibia is explained by the relation between the length...

Q:

What is an example of secondary succession? Grasses colonizing sand dunes Lichens colonizing a rock Weeds colonizing a volcanic lava flow Crabgrass colonizing an abandoned wheat field

Q:

Liabilities payable within the coming year are classified as longterm liabilities if refinancing is completed before date of issuance of the financial statements under Question 21 options A US GAAP B...

Q:

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...