AFW Industries has 204 million shares outstanding and expects earnings at the end of this year...
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AFW Industries has 204 million shares outstanding and expects earnings at the end of this year of $668 million. AFW plans to pay out 59% of its earnings in total, paying 37% as a dividend and using 22% to repurchase shares. If AFW's earnings are expected to grow by 7.5% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.9%. The price per share will be $ *** (Round to the nearest cent.) AFW Industries has 204 million shares outstanding and expects earnings at the end of this year of $668 million. AFW plans to pay out 59% of its earnings in total, paying 37% as a dividend and using 22% to repurchase shares. If AFW's earnings are expected to grow by 7.5% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.9%. The price per share will be $ *** (Round to the nearest cent.)
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Step 12 First we need to find the enterprise value Value of enterp... View the full answer
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date:
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