Compute the dividends over the next five years

Assignment Help Financial Management
Reference no: EM132070609

Suppose that a firm’s recent earnings per share and dividend per share are $3.70 and $2.70, respectively. Both are expected to grow at 9 percent. However, the firm’s current P/E ratio of 18 seems high for this growth rate. The P/E ratio is expected to fall to 14 within five years.

Compute the dividends over the next five years.

Compute the value of this stock in five years.

Calculate the present value of these cash flows using an 11 percent discount rate.

Reference no: EM132070609

Questions Cloud

What is the percent change from part b : The instructors worked on average 8 hours per week for 16 weeks for each three credit hours class of 30 students.
Suggest how can the communication between germany : Suggest how can the communication between Germany and US be maximized
Define agency relationship : Define an agency relationship, give some examples of potential agency problems, and identify possible solutions.
Name and describe at least six different roles : Describe such an experience from your personal or professional life. Explain the difficulty and how you solved it.
Compute the dividends over the next five years : Compute the dividends over the next five years. Compute the value of this stock in five years.
Explain why you believe the actions to be stealing : Give some other "nontraditional" examples of stealing from an organization. Explain why you believe the actions to be stealing.
Research on employee turnover and employee job satisfaction : There has been extensive research on employee turnover and employee job satisfaction.
Describe the strengths and weaknesses of traits : Describe the strengths and weaknesses of traits, behaviors, and outcome-based measures. For what kinds of positions is each appropriate?
LEASE and LOAN payments and subtract these two values : Compute the PV of your LEASE and LOAN payments and subtract these two values.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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