Halliford Corporation expects to have earnings this coming year of $ 3.099 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 52 % of its earnings. It will retain 22 % of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 18.9 % per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 9.1 %, what price would you estimate for Halliford stock?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 10:30, highflylex279
Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.
Answers: 1
Business, 22.06.2019 13:30, OnWheels
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?
Answers: 2
Business, 22.06.2019 19:50, lucky1940
The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.
Answers: 2
Business, 23.06.2019 00:50, aaronlikly
On december 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: accounts receivable, debit balance of $97,900; allowance for doubtful accounts, credit balance of $1,031. what amount should be debited to bad debts expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?
Answers: 1
Do you know the correct answer?
Halliford Corporation expects to have earnings this coming year of $ 3.099 per share. Halliford plan...
Questions in other subjects:
Computers and Technology, 13.10.2019 07:01
Biology, 13.10.2019 07:01
Mathematics, 13.10.2019 07:01
