Dividend payout ratio in the near future

Assignment Help Financial Management

Reference no: EM131314464

Gun manufacturer Bloodbath & Beyond expects earnings of $5 million on $20 million of equity this year, paying 60% of its earnings as dividends. It expects no changes in its ROE or dividend payout ratio in the near future. If the current dividends are $3.00 a share. Assuming BBB’s cost of equity is 19.5%, what is the stock’s intrinsic value.

Reference no: EM131314464

Questions Cloud

For the downstream velocity profile find the value of v2 : The upstream velocity, v1, is uniform across the cross section. For the downstream velocity profile as shown, find the value of v2.

Write a thorough review of established literature on a topic : Each of these stages is important to help you organize your thoughts and write a thorough review of established literature on a particular topic.

Identify an owner for each risk : Document at least ten total risks (two risks for each phase of IT projects) of the mobile application development project. Assess the likelihood of occurrence for each risk.Assess the impact of each risk on the success of the project.Identify an ow..

What are consequences if polls are sytematically inaccurate : Is it important that public opinion polls be accurate? What are the consequences if polls are sytematically inaccurate? Use the 2016 election polling as an example in making your argument.

Dividend payout ratio in the near future : Gun manufacturer Bloodbath & Beyond expects earnings of $5 million on $20 million of equity this year, paying 60% of its earnings as dividends. It expects no changes in its ROE or dividend payout ratio in the near future. If the current dividends are..

Minimum rate of return : The Good Life Insurance Co. wants to sell you an annuity which will pay you $600 per quarter for 30 years. You want to earn a minimum rate of return of 5.5 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?

Find pressure difference between inlet and outlet sections : The total drag on the object is measured to be 800 N/m of length normal to the direction of flow, and frictional forces at the walls are neglected, find the pressure difference between inlet and outlet sections.

What is the likely future role of domestic monetary policy : In a world which is becoming increasingly dominated by the free flow of capital, what is the likely future role of domestic monetary policy?

Establishes a point about either cause or effect of change : Write a 4-5 paragraph draft of your own academic essay that establishes a point about either cause or effect of this relevant change. Develop your main point about change using your own ideas, observations, and experience.

User Account

All Pages