1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Which of the following is a problem that arises in a health insurance market?
alexira [117]

Answer: The correct answer is "A disproportionate number of high-risk individuals are attracted to buy insurance.".

Explanation: A disproportionate number of high-risk individuals are attracted to buy insurance is a problem that arises in a health insurance market. Due to the greater risk, many insurers choose not to allow these individuals to hire these policies, and those that do offer these products do so with a higher premium than others.

7 0
3 years ago
Calculate income from operations for Jonas Company based on the following data: Sales $764,000 Operating expenses 52,500 Cost of
Elina [12.6K]

Answer:

173,500

Explanation:

Operating income is income derived from a business's operations, after deducting operating expenses e.g. wages, depreciation, and cost of goods sold

Operating income = sales - operating expenses- cost of merchandise sold

$764,000 - 52,500 - 538,000 = 173,500

I hope my answer helps you

7 0
3 years ago
Financial statements can be prepared _____. (select all that apply.) multiple select question.
marysya [2.9K]

Financial statements can be prepared : b. may be prepared more than once a year; c. may have a fiscal year end other than December 31.

<h3>What is financial statement?</h3>

Financial statement help to summarize the financial position of a business and it as well help to show  the day to day transaction of a company or day to day activities of a business at a particular period of time.

Financial statement of a company can be prepared more that once in a year and financial statement may tend to have fiscal year end that is other than last month of the year which is 31st December.

Therefore Financial statements can be prepared : b. may be prepared more than once a year; c. may have a fiscal year end other than December 31.

Learn more about financial statement here:brainly.com/question/21307159

#SPJ1

The complete question is:

Financial statements ______. (Select all that apply.)

a. must have a calendar year end of December 31

b. may be prepared more than once a year

c. may have a fiscal year end other than December 31

d. are prepared just once a year

8 0
2 years ago
Can anyone PLZZZ HELP me with all that plzzz. For 10 POINTS PLZZZ. :(((((
maxonik [38]

LAST QUESTION ANSWER: Federal Trade Commission (FTC)

3 0
3 years ago
Read 2 more answers
A factory building is an example of which factor of production?
Luba_88 [7]

Answer:

The making and delivery of the product.

Explanation:

Because in a factory it manufactures the product that they are making and send them to stores to sell the products for money.

5 0
3 years ago
Other questions:
  • A certificate of deposit is a receipt showing that an investor has made an interest bearing loan to a bank or a government or a
    5·2 answers
  • The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabet
    13·1 answer
  • Summit Systems has an equity cost of capital of 11.0 %​, will pay a dividend of ​$1.50 in one​ year, and its dividends had been
    12·1 answer
  • Alfredo has two offers for his grocery shop. The first offer is a cash payment of $60,000, and the second is a down payment of $
    7·1 answer
  • Dealing with competition from creation of a new productis an example of a(n) ____.
    15·1 answer
  • Complete the sentence. As _____ increases, specialization increases as well
    15·2 answers
  • From which country canada exports 2%
    9·1 answer
  • Christine hires a deck company to build a deck. The company initially does a terrible job and agrees to rebuild it. A court requ
    9·2 answers
  • In the united states, loans from ________ are far ________ important for corporate finance than are securities markets.
    7·1 answer
  • Leadership as a behavior is different from viewing leadership as traits, abilities, and skills because behaviors can be ______.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!