Take Time Corporation will pay a dividend of $4.15 per share next year. The company pledges to increase its dividend by 6.25 per
1 answer:
stock value = $ 150.91
<u>Explanation:</u>
Stock price = D /(k-g)
The given data is as follows:
D = Dividend = $4.15 , K = required percent = 9% = 0.09 , G = pledged percent = 6.25% = 0.0625
<u>The following formula is used in order to calculate the value of the stock: </u>
Stock value= D/(k-g)
Where: D = dividend, K = required return, g = growth
=150.91(rounded to the two decimal places)
Hence stock value = $ 150.91
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Answer:
$16.4
Explanation:
Given: Preferred stock= 1400 shares of $100
Total share outstanding= 29000
Total shareholder´s equity= $615600.
Now, calculating the book value per shares.
Formula; Book value per shares=
Preferred stock=
∴ Preferred stock= $140000.
Book value per shares=
∴ Book value per share= $16.4
Answer:
Net present value = $506.80
Explanation:
Provided details are
Cash outflow at present = $13,400
Present value will be same as is incurred today.
Cash inflow = $5,400 for 3 years and $2,400 in 4th year
Rate of required return = 14.2%
Present value factor for 3 years cumulative = 2.314
Present value factor for 4th year = 0.588
Present value of cash inflow = $5,400 2.314 + $2.400
0.588
= $12,495.60 + $1,411.2 = $13,906.80
Thus, net present value = Present value of cash inflow - Present value of cash outflow
= $13,906.80 - $13,400 = $506.80