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- A company just paid a dividend of € 1 per share. If the dividend is expected to increase at a steady rate of 10% per year, calculate the value of the company's share if the required return is 25%. O a. €6.67 O b. €11.25 O c. €5.22 O d. €7.33 O e. None of the given answers is correct.The EPS of a company is Rs 20 and discount rate is 15 percent. Retained earning can be employed to earn a return of 13%. If the dividend payout ratios of 10%, 25%, 60% and 80% are considered, which of these will maximise the value?(Use walter) a. 10 percent b. 25 percent c. 60 percent d. 80 percent10. Consider the following price and dividend data for Quicksilver Inc.: Year Price (£) Dividend (£) 0 10 1 0.14 2 0.14 3 14 0.14 Assume that you purchased Quicksilver's share in year 0 and sold it at the end of year 3. Your annual rate of return for holding this share is closest to ________. A. 8% B. 14% C. 20% D. 19%
- Assume that DroneTech's 3 year pro-forma is below. Assume that the appropriate discount rate is 20%. What is the fair market equity value (present value of earnings) of this company. Choose from the following "rounded" answers the one that is closest to the equity value that you calculate Revenues Expenses Profit O $537,800 O $492.800 O $479.166 O$441,600 Year 1 $400,000 $200,000 $200,000 Year 2 $500,000 $300,000 $200,000 Year 3 $700,000 $400,000 $300,000Q11 A company earns OMR 20 per share at an internal rate of 8%. The firm has a policy of paying 75% of earnings as dividends. If the required rate of return is 10%, what is the price of the share under Walter model? a. OMR 200 b. OMR 100 c. OMR 190 d. OMR 150Marj Corporation is currently selling for P22 per share. If it is selling at a Price-earnings ratio of 12, calculate Marj Corporation's recent earnings per share. * P1.83 P2.20 PO.55 P0.45
- A company currently reported dividend of $12. It is expected that will reinvest 50% of its earnings perpetually. The return on equity of the company is 20% and remains unchanged in the future. Suppose the cost of equity of the company is 13%, what is the fair price of the stock based on the dividend discount model? A. $200 В. S220 C. $400 D. $440If a company has just paid a dividend of $4 per share and never expects to pay another dividend forevor, what is the pprice of this share if the discount rate is 10%?No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 21%. a. What is the price-earnings ratio of the company? b. What would the P/E ratio be if the discount rate were 20%?
- A company has an EPS of US$12 per share. It pays out its entire earnings as dividend. It has a growth rate of zero and a required return on equity of 8 percent per annum. Assuming all cashflows are perpetuities, what will be the price of the company’s stock?Select one: a. USD150.00b.USD83.43c.USD85.00d.USD155.00No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.)Consider the financial statements for the REIT given below. Assume that the net revenue includes a loss of $4,000,000 on an asset sale. This REIT has issued 1,000,000 shares. Similar REITs are trading at FFO multiples of 10x. What valuation (share price) does this information imply for the REIT? Net Revenue Less: Less: Interest expense Net income O 49.2 O 129.2 O 95.2 89.2 Operating expenses Depreciation and amortization Income from operations $20,000,000 9,800,000 4,400,000 5,800,000 $ 1,280,000 $ 4,520,000