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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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Crank

Some producers are forced to sell their products at the prevailing market price because of (C) a high degree of similarity to competitor's products.

<h3>What is the prevailing market price?</h3>
  • Prevailing Market Price refers to the market's published wholesale price and, in the absence of a declared wholesale price, the prevailing market price of any commodities.
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  • The average wage paid to similarly employed workers in a certain occupation in the area of anticipated employment is described as the prevailing wage rate.

Therefore, some producers are forced to sell their products at the prevailing market price because of (C) a high degree of similarity to competitors' products.

Know more about market prices here:

brainly.com/question/24877850

#SPJ4

The complete question is given below:
Why are some producers forced to sell their products at the prevailing market price?

A. price takers find market analysis is too costly

B. they are very small players in the overall market

C. high degree of similarity to competitor's products

D. they can increase output without affecting the quality

8 0
1 year ago
Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase pri
ZanzabumX [31]

Answer:

total amortization expense = $5400

so correct option is C) $5,400

Explanation:

given data

purchase price = $67,500

time period = 75 months

months  = 6th

to find out

total amortization expense

solution

we get here total amortization expense that is express as

total amortization expense = \frac{purchase\ price}{time\ period} ×months  ...............1

put her value we get

total amortization expense = \frac{67500}{75} × 6

total amortization expense = $5400

so correct option is C) $5,400

5 0
3 years ago
What is Average cost
Vladimir79 [104]
Arvrage cost is the total cost divided by the number of units.
5 0
3 years ago
If a transformational leader is supposed to be so smart and visionary, why would he or she emphasize empowerment in his or her l
love history [14]

Explanation:

A transformational leader is the one that identifies where changes are needed and guide this change by motivating and inspiring the group, <em>changing expectations and perceptions in order to achieve a common goal, this common goal is the reason why they enphasize empowerment.</em>

I hope you find this information useful and interesting! Good luck!

6 0
3 years ago
Help pls
Gwar [14]

Answer:

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Students arrange information hierarchically, cate- gorically, sequentially, or in other ways. They discover and depict the overall structure of the material as well as how discrete pieces of information fit together. They organize and reorganize generalizations, principles, concepts, and facts.

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Chronological Patterns. Sequential Patterns. Spatial Patterns. Compare-Contrast Patterns. Advantages- Disadvantages Patterns. Cause-Effect Patterns. Problem-Solution Patterns. Topical Patterns.

What does it mean to analyze information?

Information analysis is the systematic process of discovering and interpreting information.

What is the benefit of analyzing information?

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now i hope this helps you

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2 years ago
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