Calculate the intrinsic value per share of brg

Assignment Help Finance Basics
Reference no: EM133003335

Breville Group (ASX ticker: BRG) just paid $3 per share as dividends. Its Chief Financial Officer forecasts a growth of 10% p.a. for each of the following two years. After this window, the analyst consensus indicates that a perpetual constant growth rate of 5% p.a. is appropriate. Given the required rate of return by equityholders (ke) of 10% p.a., calculate the intrinsic value per share of BRG.

Reference no: EM133003335

Questions Cloud

Calculate the basic eps for abc ltd : The partly paid shares carry rights to dividends in proportion to the amount paid relative to the total issue price. Calculate the basic EPS for ABC Ltd
How vertical analysis is used to analyze operations : Financial analysis is important for managing the organization. Describe how vertical analysis is used to analyze operations and how investigation of variances a
Outline the structure of the top 10 banks in spain : Outline the structure of the top 10 banks in Spain. Also please consider the number of banks.?
How much will janet have at the end of twenty-five years : Question - Janet plans on saving $3,000 a year and expects to earn 8.5 percent annually. How much will Janet have at the end of twenty-five years
Calculate the intrinsic value per share of brg : Breville Group (ASX ticker: BRG) just paid $3 per share as dividends. Its Chief Financial Officer forecasts a growth of 10% p.a. for each of the following two y
Perform a strategic organisational analysis : Perform a strategic organisational analysis: Examine the strategic and business plan including the vision, mission, values and challenges facing
Savings account be worth on december : What will your savings account be worth on December 31, 2012, assuming you made no deposits or withdrawals from the account?
Why is mt kosciusko a world heritage site : Why is Mt Kosciusko a world heritage site and how is it protected.
Calculate the cost of debt : Calculate the cost of debt from the following information: company cost of capital = 15%, cost of equity capital = 16 per cent, D = $0.2 million, and V = $0.5 m

Reviews

Write a Review

Finance Basics Questions & Answers

  Analyzing short term credit

Provide some examples of sources of short-term credit? How can use these examples to evaluate the cost of financing as a key

  How can firms ensure that code of business ethics is read

How can firms ensure that their code of business ethics is read, understood, believed, remembered, and acted on rather than ignored?

  How does this markup depend on the elasticity of demand

We write the percentage markup of prices over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?

  Calculate the rate of return you earned

Calculate the rate of return you earned while holding the bond over the 5 year period?

  What is the after-tax salvage value

What is the After-tax Salvage Value of the new machinery? Assume that the tax rate is 23%.

  What is the annual rate of interest

To repay a loan of $2000 from your bank, you promise to make equal payments every six months for the next five years totaling $3116.20.

  Acquisition of a small biotech company

New Dawn Pharma is considering the acquisition of a small biotech company - Sunset Pharmaceuticals. Sunset is developing a new drug that, if successful

  Compute the price of a par value

Compute the price of a $1,000 par value, 17 percent (semi-annual payment) coupon bond with 16 years remaining until maturity assuming

  Company capital gains yield and dividend yield

The long-run growth rate for the company is a constant 5%. What is the company's capital gains yield and dividend yield? Show explanation

  How should the policy affect the tax revenues

President Reagans tax-cut package reduced tax rates for most people. How should this policy affect.

  Determine the net pretax benefits to tec of using a wire

Determine the net (pretax) benefits to TEC of using a wire transfer payment system if monthly payments from each customer average: a. $25,000 b. $50,000

  Compute the mark-to-market value

Compute the mark-to-market value of the following short forward GBP contract. The size of the contract is GBP 3,800,000 and the forward rate is F3USD/GBP

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd