Forecasting eps growth, Your earnings forecasts for this

Forecasting eps growth

Assignment Help Management Theories

Reference no: EM13967980

Hayden Ltd intends to make its first dividend payment 5 years(s) from now. It then intends to pay dividends annually thereafter. The company has announced it expects the first three dividends to all be of the magnitude of around 5 cents per share. Subsequent dividends will then be paid out at a set rate of 50% of earnings. Your earnings forecasts for this coming year suggest that $0.20 Earnings per Share (EPS) is the most likely outcome. You are then forecasting EPS growth of around 3.2% p.a. in perpetuity. What would be your valuation of Hayden Ltd's shares, given you require a 15% p.a. return?

State your answer in dollars to three decimal places.

Reference no: EM13967980

Questions Cloud

Anomalous behaviour of fifo : Describe Belady's anomaly and provide an example that illustrates anomalous behaviour of FIFO.

Beowulf show a tremendous amount of bravery : My name is Nancy Jones. I am a single woman and my children are grown. I currently live in south west Florida, which I moved here from Nebraska a few years ago.

Identify a departmental issue observed in your current work : Identify a departmental issue observed in your current or prior work experiences or a work related issue observed as a consumer.

What pressure must a gas be compressed in order : Since volume is inversely proportional to pressure, volume decreases as pressure increases.

Forecasting eps growth : Your earnings forecasts for this coming year suggest that $0.20 Earnings per Share (EPS) is the most likely outcome. You are then forecasting EPS growth of around 3.2% p.a. in perpetuity. What would be your valuation of Hayden Ltd's shares, given ..

Insurance company general agent : After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, AA?

What are top qualities you would look for in management team : What are the top three qualities you would look for in a management team for a new business venture? Do these qualities match those typically sought by venture capitalists?

What is the nal of leasing : What is the NAL of leasing? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) How much debt is displaced by this lease? (Do not round intermediate calculations and round your final answer to 2..

Is the system interference-limited under the sic receiver : Focus on a single cell first and assume a background noise power of N0. Is the system interference-limited under the SIC receiver? Was it interference-limited under the conventional CDMA receiver?

User Account

All Pages