Consider the following security:                               Applegate Aeronautical, Incorporated             Earnings Per Share, Next Year $2.50              Dividend Payout Rate 0.400             Return on Equity 0.150             Beta 1.250                             Market Data              Market Risk Premium 0.075             Risk-free Rate 0.025                             Required:               Using the information in the tables above, please calculate the dividend per share, the retained earnings, and the intrinsic value of this stock.                 (Use cells A5 to B12 from the given information to complete this question.)                               Applegate Aeronautical, Incorporated             Market Capitalization Rate               Dividends per share (Next Year)               Sustainable Growth Rate               Intrinsic Value

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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Consider the following security:              
               
Applegate Aeronautical, Incorporated            
Earnings Per Share, Next Year $2.50             
Dividend Payout Rate 0.400            
Return on Equity 0.150            
Beta 1.250            
               
Market Data             
Market Risk Premium 0.075            
Risk-free Rate 0.025            
               
Required:              
Using the information in the tables above, please calculate the dividend per share, the retained earnings, and the intrinsic value of this stock.
               
(Use cells A5 to B12 from the given information to complete this question.)              
               
Applegate Aeronautical, Incorporated            
Market Capitalization Rate              
Dividends per share (Next Year)              
Sustainable Growth Rate              
Intrinsic Value              
               
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