Even split between dividends and repurchases

Assignment Help Financial Management
Reference no: EM131867748

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth of shares. It plans to spend $9.4 million on dividends and repurchases every year after that? forever, although it may not always be an even split between dividends and repurchases. If? Zoom's cost of equity capital is 12.6% and it has 4.8 million shares? outstanding, what is its share price? today?

Reference no: EM131867748

Questions Cloud

Firm is planning to acquire firm : Firm A is planning to acquire Firm B. If Firm A prefers to make cash offer for the merger it indicates that:
High level of positive net working capital in firm : No real problems can arise from management retaining a high level of positive net working capital in a firm.
Choice to receive one of the two annuities : Suppose that you have a choice to receive one of the two annuities. How large would your payments be?
The present value of lump sum future amount : The Present Value of a lump sum future amount. What are the project management techniques used in a new product , process or service development ?
Even split between dividends and repurchases : it may not always be an even split between dividends and repurchases.
Government securities for the next two years : Assume your required rate of return on the second-year investment is 11%; otherwise, you will choose to go with the 2-year security.
Relationship between data mining-information technologies : What is data mining? How might it be used in logistics? What is the relationship between data mining and information technologies (IT)?
About replacing an old equipment with new one : Alpha ltd. Is planning about replacing an old equipment with new one.
Assume the company has other profitable projects : You have been hired as a consultant for Pristine Urban-Tech Zither plc. (PUTZ), manufacturers of fine zithers. Assume the company has other profitable projects.

Reviews

Write a Review

Financial Management Questions & Answers

  Value this floating rate bond

Consider a floating rate bond that pays 3-month LIBOR plus 250 basis points. Value this floating rate bond.

  Identified investment project with the cash flows

Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash fl

  Compute the marginal cost of capital schedule for ml

Matsumoto Limited (ML), a large conglomerate firm. Compute the marginal cost of capital schedule for ML, and determine the break points in the schedule.

  Issuing some new preferred shares

Lexar Corporation is issuing some new preferred shares. The preferred stock will pay a perpetual dividend of $12.00 per year beginning 9 years from now.

  What is the effective annual rate on loan

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $2,600,000 purchase price. The monthly payment on this loan will be $11,000. What is the effective annual rate on this..

  What is the yield to call if the bond is called at nine year

What is the yield to call if the bond is called at nine years (state as an APR)?

  What is the present value of an annuity

Suppose the interest rate is 7.1% APR with monthly compounding. What is the present value of an annuity that pays $110 every three months for five years?

  What was the percent of increase in price

Pete Smith found in his attic a Woody Woodpecker watch in its original box. It had a price tag on it for $4.60. The watch was made in 1947. Pete brought the watch to an antiques dealer and sold it for $30. What was the percent of increase in price?

  What is the present value of the cash flows

The state lottery's million-dollar payout provides for $1.3 million to be paid in 20 installments of $65,000 per payment. The first $65,000 payment is made immediately, and the 19 remaining $65,000 payments occur at the end of each of the next 19 yea..

  Value of firm before and after the repurchase announcement

What is the market value of the firm before and after the repurchase announcement?

  Firms credit customers to pay for their purchases

Morning Star has credit sales of $914,900, cost of goods sold of $764,800, average accounts receivable of $121,300, and average accounts payable $127,600. On average how long does it take for the firm's credit customers to pay for their purchases?

  Employees not take any heroic measures during robbery

Why do banks insist that employees not take any heroic measures during robbery?

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