AFW Industries has 211 million shares outstanding and expects earnings at the end of this year of $740 million AFW plans to pay out 64% of its earnings in total, paying 39% as a dividend and using 25% to repurchase shares If AFW's earnings are expected to grow by 7 7% per year and these payout rates remain constant determine AFW's share price assuming an equity cost of capital of 12.9% The price per share will be S (Round to the nearest cent)

AFW Industries has 211 million shares outstanding and expects earnings at the end of this year of $740 million AFW plans to pay out 64% of its earnings in total, paying 39% as a dividend and using 25% to repurchase shares If AFW's earnings are expected to grow by 7 7% per year and these payout rates remain constant determine AFW's share price assuming an equity cost of capital of 12.9% The price per share will be S (Round to the nearest cent)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 24P

See similar textbooks

Similar questions

Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming year. You have determined that its present capital structure (80% equity and 20% debt) is optimal, and its net income is forecasted at $140 million. Use the residual distribution approach to determine IWT’s total dollar distribution. Assume for now that the distribution is in the form of a dividend. Suppose IWT has 100 million shares of stock outstanding. What is the forecasted dividend payout ratio? What is the forecasted dividend per share? What would happen to the payout ratio and DPS if net income were forecasted to decrease to $90 million? To increase to $160 million? In general terms, how would a change in investment opportunities affect the payout ratio under the residual distribution policy? What are the advantages and disadvantages of the residual policy? (Hint: Don’t neglect signaling and clientele effects.)
AFW Industries has 211 million shares outstanding and expects earnings at the end of this year of $652 million. AFW plans to pay out 58% of its earnings in total, paying 30% as a dividend and using 28% to repurchase shares If AFW's earnings are expected to grow by 8.3% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.2% The price per share will be $ (Round to the nearest cent.)
A company is currently paying a divinded of Ksh 2.00 pr share. The dividend is expected to grow at a 15% annual rate for three years,then at 10% for the next three years after which it is expected to grow at a 5% rate forever. What is the present value of the share if the capitalization rat is 9%?
K AFW Industries has 189 million shares outstanding and expects earnings at the end of this year of $729 million. AFW plans to pay out 58% of its earnings in total, paying 36% as a dividend and using 22% to repurchase shares. If AFW's earnings are expected to grow by 7.2% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.4%. ECCORD The price per share will be $. (Round to the nearest cent.) his efu
AFW Industries has 196 million shares outstanding and expects earnings at the end of next year of $672 million. AFW plans to pay out 60% of its earnings in total, paying 34% as a dividend and using 26% to repurchase shares. If AFW's earnings are expected to grow by 8.9% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.1%. The price per share will be $____ (Round to the nearest cent.)
Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this dividend will grow by 7% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 12%? $21.00 O $30.00 O $33.00 O $22.50
AFW Industries has 182 million shares outstanding and expects earnings at the end of this year of $652 million. AFW plans to pay out 61% of its earnings in total, paying 30% as a dividend and using 31% to repurchase shares. If AFW's earnings are expected to grow by 8.6% per year and these payout rates remain constant, determine AFW's share price assuring an equity cost of capital of 12.5% What is the price per share?
Von Bora Corporation (VBC) is expected to pay a $2.25 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever andVBC's equity cost of capital is 11%, then the value of a share of VBS stock is closest to: A. $18.00 B. $27.00 C. $13.24 D. $45.00
NoGrowth Industries presently pays an annual dividend of $1.90 per share and it is expected that these dividend payments will continue indefinitely. IfNoGrowth's equity cost of capital is 8%, then the value of a share of NoGrowth's stock is closest to: A. $28.50 B. $23.75 C. $19.00 D. $26.13
Summit Systems will pay an annual dividend of $1.48 this year. If you expect Summit's dividend to grow by 5.3% per year, what is its price per share if the firm's equity cost of capital is 11.6%? The price per share is $ (Round to the nearest cent) CZON