Shares outstanding when solving for share price

Assignment Help Financial Management

Reference no: EM13918012

Rachel Greene Investors has 500 million shares of common stock outstanding. Rachel is seeing huge growth this year and expects it to continue so, they would like to increase dividends to 47% of earnings. Rachel is also planning on using 30% to repurchase shares. The cost of equity is projected at 13% and earnings are expected to grow by 6% in the future. IF Rachel earned $900 million this year and the payout policies remain constant what is the price of Rachel Green Investors stock? Assume 500 million shares outstanding when solving for share price.

Reference no: EM13918012

Questions Cloud

Who benefit from illegal immigration/immigrants : Who benefits most from the work/jobs provided by the illegal immigrants, and which U.S. workers lose out as a result of the added competition for those low-wage jobs?

Importance of ethical accountants to society : Ethical accountants are important to society because _____. a. they pay their taxes b. the information produced is reliable c. they will not go to prison and waste taxpayers' money d. none of these answers is correct

Evaluate the two evaluation instruments used in the fabrics : Evaluate the two evaluation instruments used in the Fabrics, Inc. case. Discuss how the evaluation results should be used. Be sure to address internal and external validity of the measurements

Problem regarding the performance management system : Moreover, one of the managers has challenged your plan by voicing his concern that a performance management system might create or increase the demands (such as excessive paperwork) on managers' and employees' time and resources.

Shares outstanding when solving for share price : Rachel Greene Investors has 500 million shares of common stock outstanding. Rachel is seeing huge growth this year and expects it to continue so, they would like to increase dividends to 47% of earnings. Rachel is also planning on using 30% to repurc..

The statement of cash flows under the indirect method : Ragg Shop, Inc. (RSI), recognized $3,800 of sales revenue on account and collected $2,950 of cash from accounts receivable.

How is jesus depicted in christian art : After the period of Constantine, how is Jesus depicted in Christian art? E. R. Dodds identified which three reasons for the "success" of early Christianity?

Assessing sweatshop essay sweatshirts from sweatshops : Applying the Universal Intellectual StandardsProvide specific examples from the essay that violate two of the Universal Intellectual Standards.

How much would you expect the premium to be : If the insurance company uses expected value to calculate premiums, how much would you expect the premium to be, assuming the insurance company adds on $300 for handling and profit? What is the value of this policy to your organization?

User Account

All Pages