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aksik [14]
3 years ago
12

Zoom Enterprises expects that one year from now it will pay a total dividend of $ 5.0 million and repurchase $ 5.0 million worth

of shares. It plans to spend $ 10.0 million on dividends and repurchases every year after that​ forever, although it may not always be an even split between dividends and repurchases. If​ Zoom's equity cost of capital is 13.0 % and it has 5.0 million shares​ outstanding, what is its share price​ today?
Business
1 answer:
uranmaximum [27]3 years ago
5 0

Answer:

Consider the following calculations

Explanation:

The price per share is computed as shown below:

Present value of equity is computed as follows:

= $ 10 million / 0.13

= $76,923,076.92

Now we shall divide it by the number of shares to get the price per share

= $76,923,076.92 / 5,000,000

= $ 15.38 per share

Feel free to ask in case of any query relating to this question

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The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's
pashok25 [27]

Answer:

(A) 6%

(B) 20

Explanation:

The market capitalization rate for Admiral motors is 8%

= 8/100

= 0.08

The expected ROE is 10%

= 10/100

= 0.1

The expected EPS is $5

The Plowback ratio is 60%

= 60/100

= 0.6

(A) The growth rate can be calculated as follows

= Plowback ratio × ROE

= 0.6 × 0.1

= 0.06×100

= 6%

Hence the growth rate is 6%

(B) The P/E ratio can be calculated as follows

= 1-0.6/0.08-0.06

= 0.4/0.02

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3 years ago
You give disappointments little thought after they happen.
bogdanovich [222]
Doesn’t everyone do something similar to that respect? Typically when they’re uninterested yet forced?
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Which of the following typically have the highest auto insurance premiums?
igor_vitrenko [27]
Young inexperienced drivers

3 0
3 years ago
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Will i be rich from business or entrepreneurship
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Answer:

Business

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Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the l
irina1246 [14]

Answer:

1) $0.27 per loaf of bread

2) $0.28 per loaf of bread

3) 3.7%

Explanation:

current production = 1,800 loaves per month

current labor expense = $8 per hour

constant utility cost = $800

ingredients per loaf = $0.40

multi-factor productivity = total output / (labor + materials + overhead)

current multi-factor productivity = 1,800 loaves / ($5,120 + $800 + $720) = $0.27 per loaf of bread

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3 years ago
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