Compute the dividends over next five years

Assignment Help Financial Management

Reference no: EM131316361

Suppose that firm's recent earnings per share and dividend per share are $2.90 and $2.10, respectively. Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. the P/E ratio is expected to fall to 18 within five years.

Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places)

Reference no: EM131316361

Questions Cloud

Computer fraud-used to distribute stock options to employees : Computer Fraud? Marcie Lewis and Fred Cisco worked as accountanting managers at Save-Lot Foods Stores. The company distributes stock options to its 10,000 employees as a part of their compensation package. Marcie and Fred both work with the ACE compu..

Strictly manages the provides that beneficiaries use : a ppo strictly manages the provides that beneficiaries use. the idea of creating integrated delivery systems is in preparation for the conceptt of covered lives as part of healthcare reform. this concept of getting paid a fixed amount, per covered li..

Trying to improve its inventory control system : Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49000 units per year, and ordering cost of $8 per order and carrying cost of $1.60 per unit

Determine the depreciation schedules : An equipment costing $20,000 for assembling an electronics assembly is being considered by Sam Electronics in Cookeville, Tennessee. The equipment will have a salvage value of $5000 at the end of its life of 4 years. Determine the depreciation schedu..

Compute the dividends over next five years : Suppose that firm's recent earnings per share and dividend per share are $2.90 and $2.10, respectively. Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. the P/E ratio is expected to ..

What is the value of the annuity today : A 7-year annuity of 14 $8,600 semiannual payments will begin 9.5 years from now, with the first payment coming 10 years from now. If the discount rate is 10 percent compounded semiannually, what is the value of this annuity seven years and five years..

Why health education is essential among female malaysian : Why health education is essential among female Malaysian (18-55 years) to prevent osteoporosis (Primary)? Describe the challenges and barriers in the prospect of factors associated with osteoporosis in Malaysian women by recent literature review (..

Draw a supply-demand diagram of the us treasury bond market : Draw a supply/demand diagram of the US Treasury bond market to illustrate the effects on it of the developments cited in part A. (Note: you do not have to include the exact numerical price before and after the change in expectations.) Label your d..

How much capacity should the company buy : It is known that the company loses $ 3 for each unit of unused capacity and $ 7 for each unit of unsatisfied demand. How much capacity should the company buy?

User Account

All Pages