Justin Cement Company has had the following pattern of earnings per share over the last five years: Year Earnings Per Share 20X1 $ 8.00 20X2 8.40 20X3 8.82 20X4 9.26 20X5 9.72 The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings. a. Project earnings and dividends for the next year (20X6). (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answers to 2 decimal places.) b. If the required rate of return (Ke) is 13 percent, what is the anticipated stock price (P0) at the beginning of 20X6? (Round the growth rate to the nearest whole percent. Do not round any other intermediate calculations. Round your answer to 2 decimal places.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Justin Cement Company has had the following pattern of earnings per share over the last five years: Year Earnings Per Share 20X1 $ 8.00 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
3M's Cubitron II, described as "an industrial abrasive that cuts faster, lasts longer, sharpens itself, and requires less elbow grease than any other abrasive on the market" is an example of: a.
Answers (1)
Butler Automotive developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month. As more drivers bring in their vehicles, Butler expects to also do more oil changes and brake repairs.
Answers (1)
In addition to the $10 per meal pricing, there is an "all-you-care-to-eat" deal. what is the most that you would be willing to pay for a meal plan that allows you to eat unlimited meals during a weekend at no cost for each meal? explain
Answers (2)
Matt newell, a former air force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views of the rocky mountains.
Answers (1)
For a pepperidge farm production facility, managers and employees would be
Answers (1)
New Questions in Business
Identify the major task that must be mastered in early adulthood, according to levinson.
Answers (1)
Ctual total factory overhead incurred $ 28,175 Standard factory overhead: Variable overhead $ 3.10 per unit produced Fixed overhead ($12,000/12,000 predicted units to be produced) $ 1 per unit Predicted units produced 12,000 units Actual units
Answers (1)
The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28 were $800 and $400, respectively.
Answers (1)
One of the causes of the financial crisis of 2008 was the connectedness of financial institutions, where financial assets for one firm are often debt for other financial institutions.
Answers (1)
SL Energy has $500,000 invested in a 2-stock portfolio. $250,000 is invested in Potts Manufacturing and the remainder is invested in Stohs Corporation. Potts' beta is 2.0 and Stohs' beta is 0.8. What is the portfolio's beta? the portfolio's beta?
Answers (1)