You are an investment analyst, currently considering some investment. You have analyzed the company's financial statement...
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You are an investment analyst, currently considering some investment. You have analyzed the company's financial statement and observed the following. Company payout policy The expected earning for year end Number of shares outstanding Firms earning growth Market price per share (S) Company X 40% $200 million 40 million 5% 25 Company Z 60% $150 million 30 million 7% 30 i) Find the total dividend paid recently based on the current dividend policy for respective firms (X, Z) ii) Calculate earning per and dividend per share for X and Z iii) Calculate stock price for X and Z if the required rate (r) are 10% 12% respectively. Determine whether stocks are under or overpriced. You are an investment analyst, currently considering some investment. You have analyzed the company's financial statement and observed the following. Company payout policy The expected earning for year end Number of shares outstanding Firms earning growth Market price per share (S) Company X 40% $200 million 40 million 5% 25 Company Z 60% $150 million 30 million 7% 30 i) Find the total dividend paid recently based on the current dividend policy for respective firms (X, Z) ii) Calculate earning per and dividend per share for X and Z iii) Calculate stock price for X and Z if the required rate (r) are 10% 12% respectively. Determine whether stocks are under or overpriced.
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Answer rating: 100% (QA)
To find the total dividend paid recently based on the current dividend policy for firms X and Z we can use the formula Total Dividend Payout Ratio Ear... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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