Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 9.4% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple? Select the correct answer. a. 14.23 b. 12.23 c. 6.23 d. 8.23 e. 10.23

Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 9.4% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple? Select the correct answer. a. 14.23 b. 12.23 c. 6.23 d. 8.23 e. 10.23

Name: Brockman Corporation's earnings per share were $3.50 last year, and it
Uploaded: 2024-03-20T06:51:32.000Z
Channel: Bartleby
Description: Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 9.4% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple?Select the correct answer.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 6.6% per year. If that growth rate were maintained, how many years would it take for Thomson's EPS to triple? a. 15.81 b. 15.13 c. 17.19 d. 13.41 e. 15.99
Last year Thomson Inc's earnings per share were $4.20, and its growth rate during the prior 5 years was 4.6% per year. If that growth rate were maintained, how many years would it take for Thomson's EPS to triple? O a. 15.41 years O b. 21.74 years c. 23.33 years O d. 19.43 years O e. 24.43 years
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent next year and then decreasing the growth rate to a constant 5 percent per year. The company just paid its annual dividend in the amount of $1 per share. What is the current value of a share if the required rate of return is 14 percent? a. 13.28 b. 13.42 c. 13.33 d. 13.19 e. 13.24
Company Z earnings and dividends per share will grow indefinitely by 4.1% a year if next year's dividend is $9.0. The market capitalization rate is 13.9%. If Company Z were to distribute all its earnings, it could maintain a level dividend stream of $11.3 a share. How much is the market actually paying per share for growth opportunities? A. -11.6 B. 33.8 C. 15.0 D. 10.5
QUESTION 4 Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 10.2% per year. If that growth rate were maintained, how many years would it take for Thomson's EPS to triple? a.9.73 b. 13.91 c.9.16 d. 11.31 e. 8.82
which one is corect plese confirm? QUESTION 39 The earnings of Omega Supply Company have grown from $2.00 per share to $4.00 per share over a nine-year time period. Determine the compound annual growth rate. a. 100% b. 11.1% c. 8% d. 22.2%
If the last dividend paid by Chemical Brothers Inc. was $1.25 and analysts expect these payments to increase 4% per year, what will the stock price be next year if the required return is 15%? Select one: O a. $12.29 O b. $11.82 O c. $31.25 O d. $12.78 O e. $23.11
12. Trend-line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a. If the market expects a 10% rate of return on Trend-line, at what price must it be selling? b. If Trend-line's earnings per share will be $8, what part of Trend-line's value is due to assets in place, and what part to growth opportunities?
1. Using PROBLEM 2, what is the projected growth rate for the 10-year period? (Round off to 2 decimal places. Example 12.534% must be written as 12.53) 2. Using PROBLEM 2, If your required return on investment is 12%, how much will be the INTRINSIC Value of U-GANDA Corporation? 3. Using PROBLEM 2, If your required return on investment is 12%, would you purchase the shares of U-GANDA Corporation? Substantiate your answer.
An investment has doubled in 8 years. What is the annually compounded rate of return? Select one: a. 7.89% b. 9.05% c. 10.14% d. 5.77% You bought a Tweet Plc. share for $34.50 at the beginning of the year. During the year, the share paid a $1.50 dividend and at the end of the year it traded at $37.50. What is the total return on your investment? Select one: a. 12.75% b. 11.5% c. 14.25% d. 13% The risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta of 1.2, what is its expected return? Select one: a. 17% b. 15.5% c. 14% d. 16.25% Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,310.12 b. $3,405.54 c. $3,100,21 d. $3,215.41
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS=15). How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44
Last year Mike Corporation's sales were $134 million. If sales grow at 8% per year, how large (in millions) will they be 4 years later? Select one: a. $181.17 b. $186.21 c. $182.31 d. $185.10