Question: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It

Zoom Enterprises expects that one year from now it will pay

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases overy year after that forever, although it may not always bo an even split betweon dividends and repurchases. If Zoom's equity cost of capital is 13.6% and it has 4.6 million shares outstanding. What is its share price today? The price per share is $ (Round to the nearest cent)

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:

1. 2. 3. a) b) Cooperton Mining just announced it will cut its dividend from $4.02 to $2.59 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected...

Q:

1. Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and...

Q:

Rampart Corporation has a dividend yield of 1.7%. Its equity cost of capital is 8.9%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Rampart's...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and repurchase $4.9 million worth of shares. It plans to spend $9.8 million on dividends and repurchases...

Q:

Blake Accounting Services has the following transactions. Its beginning work-in-process services account balance is zero. a. Purchased supplies costing $11,000 on account. b. Paid property tax,...

Q:

The concentration of Fe3+ ion in a sample of H2O is 335.0 ppm. What mass of Fe3+ ion is present in 3,450 mL of H2O, which has a density of 1.00 g/mL?

Q:

Which of these valuation methods is the most appropriate to use when analyzing a stock? A ) Dividend discount model B ) P / E ratio C ) Non - constant dividend growth model D ) Multiple methods

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

Give an example of a skip-and-jump survey question. Why should this type of question be avoided? (Objective 3)

Q:

How can a writer determine whether to use a formal, third-person style or an informal, firstperson style when writing a formal report? (Objective 1)

Q:

You are a new employee for Chapel Hill Gas Company.Your supervisor has asked you to use your creative talents in developing a simple message that could be used to remind customers to pay their bill...