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sergey [27]
3 years ago
7

ABC Co. has 165 million shares outstanding and expects earnings at the end of this year of $2.05 billion. ABC plans to pay out 4

0% of its earnings in total, paying 25% as a dividend and using 15% to repurchase shares. If ABC’s earnings are expected to grow by 9.2% per year and these payout rates remain constant, determine ABC’s share price assuming equity cost of capital 15%.
Business
1 answer:
frosja888 [35]3 years ago
8 0

Answer:

Share price = $85.684

Explanation:

It is given that  ,Ke = cost of equity = 15% ,g = Growth = 9.2%%  and Dividend and Repurchase = 40%

Now we know that

PV = CF /(Ke- g)

PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058

=$14137931034.483

Share price = $14137931034.483 / 165000000 million

Share price = $85.684

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What are the 5 industries which comprise two-thirds of Houston’s total exports?
Verdich [7]

Answer:

Top 5 industries in Houston:

  1. Petroleum and coal products.
  2. Chemicals.
  3. Oil and Gas extraction.
  4. Construction and Mining machinery.
  5. Plastics.

Other sectors supported by Energy sector.

  • Real Estate - oil workers are able to rent and buy houses.
  • Finance and Insurance -  due to investments in the Energy industry as well as salaries enabling investments in other finance products.
  • Retail Trade - Employees in energy are able to afford goods and services offered by retail trade thereby supporting the sector.
  • Government - Huge taxes generated from energy sector jobs contribute to both the Federal and State governments.
  • Agriculture - As is the case in other sectors, energy sector employees spend a lot on food which props up the agricultural sector.
  • Construction - With the massive construction projects needed in the energy sector, the construction sector gains massively from interacting with the energy sector.
3 0
3 years ago
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if
kotykmax [81]

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per mile = (High Operating cost - low operating cost) ÷ (High miles - low miles)

= ($845 - $625) ÷ (3,350 miles - 2,250 miles)

= $220 ÷ 1,100 miles

= $0.2 per miles

Now the fixed cost equal to

= High operating cost - (High miles × Variable cost per miles)

= $845 - (3,350 miles × $0.2 per miles)

= $845 - $670

= $175

And, the contribution margin income statement is presented below:

Sales (1,400 × $0.6)                                         $840

Less: Variable cost (1,400 × $0.2)                ($280)

Contribution margin                                        $560

Less: Fixed cost                                               ($175)

Net  operating income                                    $385

5 0
3 years ago
Please provide at least 3 similarities and 3 differences between insurance companies and depository institutions both in terms o
Galina-37 [17]

Answer:

Explanation:

I will be starting with the similarities first. 3 of the similarities both of them share are

1) They both have a financial leverage that is quite high

2) they both can be subjected to national oversight as regards to their balance sheet quality.

3) they both are institutions that accepts funds and also gives out funds to finance commercial firms

Moving on to the differences, differences that exists between both includes

1) Insurance companies can are invest in stock markets but depository institutions do not have that leverage.

2) Insurance companies do not have fixed composition of liabilities, while depository institutions have.

3)

3 0
3 years ago
John is evaluating which investment would be best for his company. He wants to determine the future value of a certain investmen
ruslelena [56]

Answer: $220

Explanation:

The following information can be derived from the question:

PV = $200

INT = 0.1 or 10%

N = 1 (years)

To calculate the future value of this investment, we will use the formula:

FV = PV( 1 + i)^n

FV = $200(1 + 0.1)

FV = $200(1.1)

FV = $220

The future value of this investment would be $220.

6 0
2 years ago
Active/passive she is watering the plants​
Alja [10]

Answer:

active

Explanation:

she "is" means she is currently watering the plants. if it was passive it would have been like this, "she watered the plants".

4 0
2 years ago
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