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
aalyn [17]
2 years ago
14

Hyper, Inc. is a growing firm that chooses to payout only 20% of its earnings as dividends (thus, it has a plowback ratio of .8)

. Hyper expects EPS next year of $5 and and a Return on Equity of 15%. This ROE is expected to be maintained indefinitely and is also appropriate to use for Hyper's required return on equity. Given this information, what is the current price of Hyper, Inc. stock
Business
1 answer:
alukav5142 [94]2 years ago
4 0

Answer:

a.$33.33

Explanation:

Options are "<em>a.$33.33 , b. $30.13 , c. $16.67 , d. $26.66"</em>

<em />

EPS1 = $5

D1 = 0.20($5) = $1

Sustainable Growth Rate = (0.80)(0.15) = 12%

As per Dividend Discount Model,

Stock Price = D1/(r - g)

Stock Price = 1/(0.15 - 0.12)

Stock Price = $33.33

Therefore, the current price of Hyper, Inc. stock $33.33

You might be interested in
A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 5
melomori [17]

Answer:

Ending inventory cost= $599

Explanation:

Giving the following information:

June 1 150 units $ 390 (2.6)

June 10 200 units 585 (2.93)

June 15 200 units 630 (3.15)

June 28 150 units 495 (3.3)

Ending inventory in units= 200

<u>To calculate the ending inventory, first, we need to calculate the average price:</u>

Average price= (2.6 + 2.93 + 3.15 + 3.3) / 4= $2.995

<u>Now, the ending inventory:</u>

Ending inventory= 2.995*200

Ending inventory= $599

8 0
3 years ago
In order to assure better management acceptance, the flow of input data for budgeting should begin with the
laiz [17]

The flow of input data for budgeting<span> should begin with the lower levels of management in order to </span>assure<span> better management acceptance. Lower level management is otherwise known as supervisory or operative level of management. This level consists of supervisors, superintendents, or </span>foremen. 

 

<span> </span>

3 0
3 years ago
Bill and rosie have been happily married for 40 years. they have never spent more than two nights apart. bill has been battling
Andre45 [30]
The type of care that Bill is receiving is hospice care. It is a care of which they focus on patients or individual who are ill, either chronically or terminally. They tend to provide the care that the patients need in regards to their needs of both spiritually and even emotionally. It could be seen above as Bill is being cared for as he is ill and is being provided by the care he needs.
3 0
2 years ago
What channel intermediary does not take title to products, but instead brings a seller and buyer together?.
kondaur [170]

Answer:

It would be the agent by definition.

4 0
2 years ago
Read 2 more answers
A __ in the money supply will cause interest rates to decrease, which, in turn, causes spending to__
gogolik [260]

Answer:

A <u>increase</u> in the money supply will cause interest rates to decrease, which, in turn, causes spending to <u>increase.</u>

7 0
3 years ago
Read 2 more answers
Other questions:
  • Most economists believe that a cut in tax rates a. would generally increase government tax revenue. b. would have no effect on a
    12·1 answer
  • You own a portfolio that is 32 percent invested in Stock X, 20 percent invested in Stock Y, and 48 percent invested in Stock Z.
    12·1 answer
  • 4. Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. T
    9·1 answer
  • A company incurred the following costs: $6,000 for indirect labor; $26,000 for direct labor; $2,500 for utilities for the factor
    13·1 answer
  • An __________ industry has low entry barriers, suppliers and buyers with strong bargaining positions, strong competitive threats
    7·1 answer
  • The journal entry to record a note received from a customer to replace an account is A. debit Notes Receivable credit Accounts R
    5·1 answer
  • The w in the wh framework for business ethics stands for
    14·1 answer
  • Which of the following should be filed directly after Nigel?Exit Test A Nathaniel B Nickel C Nuttall D Nicolas
    5·1 answer
  • New York City is the most-visited city in the world. <br><br> A. True <br> B. False
    7·1 answer
  • The salary of the project manager and temporary rental space for the project team would be classified as __________ costs.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!