Business, 24.04.2020 21:53, SuperWoman9172
Tricoat Paints’ most recent estimated) annual earnings are $3 per share, with a dividend payout ratio of 1/3. Suppose Tricoat plans to maintain this dividend payout ratio indefinitely and the annual dividend was just paid. Its beta is 1.25 and suppose its ROE is 9%. Suppose again that the risk-free rate is 6% and the expected annual market return is 14%. (a) At what price should Tricoat’s stock sell? (b) What is its current price-earnings ratio? (c) What is its present value of growth opportunities? (d) Suppose your research suggests that Tricoat will announce momentarily that it will immediately increase its dividend payout ratio to 2/3, yet the overall market is unaware of this development. Find the intrinsic value of the stock. Compare your answer to that of part (a) and describe why intrinsic value changed the way that it did.
Answers: 2
Business, 22.06.2019 03:50, raieliz1414
Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince
Answers: 1
Business, 22.06.2019 04:30, fixianstewart
4. the condition requires that only one of the selected criteria be true for a record to be displayed.
Answers: 1
Business, 22.06.2019 09:20, swello1937
Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.
Answers: 2
Tricoat Paints’ most recent estimated) annual earnings are $3 per share, with a dividend payout rati...
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