What will its current price per share be

Assignment Help Accounting Basics
Reference no: EM133035436

Question - The Kam Sing Company (an all-equity company) currently has an after-tax cash flows of RM3.00 per share. It pays out 50% of its earnings in dividends. If it expects to keep the same payout ratio, and to earn 20% on future investments forever, what will its current price per share be? Assume the cost of capital (r%) is 15%.

Reference no: EM133035436

Questions Cloud

Calculate the accrued interest for Bond X : If the short seller buys the bonds today and sell it on delivery date at the locked-in futures price. Calculate the accrued interest for Bond X
Value chain analysis and resource : Value Chain Analysis and Resource Based View are two important approaches for strategic analysis of a company. One focuses on value added at various steps of va
Human interface features of product design : As head of product development for mobile telephones, you are about to hire someone to assist in the human interface features of product design.
What methods can be used for process analysis : Where could you collect information from to provide information on and resources for improvements in relation to environmental/sustainability practices?
What will its current price per share be : If it expects to keep the same payout ratio, and to earn 20% on future investments forever, what will its current price per share be
What is the amount to be presented : What is the amount to be presented in the balance sheet at the end of the first full year, during which the machine was used for 15,000 hours
What is the binomial probability : What is the Binomial Probability when the number of trials is 17, probability is 0.46, and we want less than 13 successes. Use 4 decimal places.
Develop system for monitoring the resource usage : Develop a system for monitoring the resource usage that includes a policy and procedures for the evaluation of the resource allocations
Evaluate okwaho existing bonus system : Okwaho walked up the path to a small, tidy home on his First Nations urban reserve and reluctantly knocked on the door. Chances were the community had already r

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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