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Question: questions 16 amp 17...

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Assume a Company Xs stock price today and cost of equity is consistent with the dividend discount model for constant growth; HINT: Cost of Equity = Dividend Yield + Capital Gain Yield. Use the information in the table below to answer problems 16-17. Any missing information will need to be solved for. TIME (Years) 0 N 1 350.00 Dividends Shares Outstanding Book Value Price Per Share Return On Equity Cost of Equity Long Term Growth Dividends Per Share 135.00 $6,750.00 80.00 12.0% 16. Company Xs dividend payout ratio is closest to: A. 0.3 B. 0.4 C. 0.5 D. 0.6 E. 0.7 17. The present value of Company Xs first dividend payment one year from now (T1) is closest to: A. $3.33 B. $3.40 C. $3.73 D. $3.81 E. $3.83

Questions 16 & 17

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