Transcribed Image Text
Ten years ago a XYZ stock paid a $0.30 dividend. Since then ithas split two for one three times and three for two twice. XYZcurrent earnings per share are $1.40, and the payout ratio is 30%.The dividends are expected to grow with their historical rate forthe next three years. Beginning year four, XYZ return on equity isexpected to be 12%. If the firm’s appropriate discount rate is10.8% what the stock price should be?
Other questions asked by students
A block of mass 4 kg is attached to a massless ideal spring and suspended...
A total of 10 marbles Three marbles are randomly drawn from the bag tie marbles...
A population has a mean = 88 and a standard deviation ?=30. Find the...
8 Identify which of the following trig functions represents that of a sin cos tan...
For each of the following business transactions indicate the title of the accounts affected, the...
7. A job order cost system and a process cost system are two alternative methods...
how do you express on a journal entry: purchasing plumbing equipment for $25,000 making a...
Assume you have a one-year investment horizon and are trying to choose among three bonds....
Review Rule 702 of the Federal Rules of Evidence. What qualifies a witness as an...