Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 $2.54 2018 2.21 2017 1.81 2016 1.22 2015 1.48 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 22% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.54.

Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 $2.54 2018 2.21 2017 1.81 2016 1.22 2015 1.48 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 22% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.54.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 $2.49 2018 2.28 2017 1.86 2016 1.21 2015 1.48 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 22% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.49.
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Use the historical dividend data below to calculate the constant growth rate, estimate the price of O'Brien Ltds’ common stock knowing that the investor has an 19% required rate of return. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $0.41 $0.48 $0.56 $0.65 $0.75 $0.88 $0.99 $1.10 $1.13 $1.39 Question 10Answer a. g= 17.50% and Price (P0) = $56.43 b. g= 14.04% and Price (P0) = $31.49 c. g= 27.4% and Price (P0) = $300.81 d. g= 14.53% and Price (P0) = $35.60
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Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: IT Year Dividend per share 2019 $2.49 2018 2.24 2017 1.83 2016 1.22 2015 1.53 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.49.
You have collected the following information regarding Impi industrula Corporation's historical earnings per share. 2012 =R12.36 2013= R13.60 2014 =R15.82 2015= R17.80 2016= R20.90 2017 = R21.78 Based on your analysis of Impu's fundamentals you estimate that the firm's earnings will continue to grow at its average historical growth rate for the next year but that in the following year, as a result of the launch of a new product the form is currently developing, earnings will grow at a rate of 20% per year for two years. After this, you project that the earnings growth rate will decrease by 5% per year for the next two years, to its long term sustainable rate. You project that the firm will maintain a 50% dividend pay-out ratio and that the appropriate market capitalization rate for Impi Industrial Corporation is 15%. What action would yoh take if the firm's shares are currently trading at R620 per share?
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Over the last 10 years, a firm has had the earnings per share shown in the following table: Year Earnings per share Year Earnings per share 2022 $4.65 2017 $2.58 2021 $3.78 2016 $1.17 2020 $3.12 2015 $1.31 2019 $2.82 2014 −$1.98 2018 $3.97 2013 $ a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2017? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2017? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend…
Use the historical dividend data below to calculate the constant growth rate, estimate the price of O'Brien Ltds’ common stock knowing that the investor has an 19% required rate of return. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $0.42 $0.48 $0.56 $0.65 $0.75 $0.88 $0.99 $1.10 $1.13 $1.37
Calculate the annual dividend growth rate (include excel formulas) Based on the annual dividend growth rate, will you forecast a constant or non-constant growth in dividends? Explain? Date Dividends 8/11/2010 0.3025 12/8/2010 0.3025 3/9/2011 0.365 5/11/2011 0.365 8/10/2011 0.365 12/7/2011 0.365 3/8/2012 0.3975 5/9/2012 0.3975 8/8/2012 0.3975 12/5/2012 0.3975 3/8/2013 0.47 5/8/2013 0.47 8/7/2013 0.47 12/4/2013 0.47 3/7/2014 0.48 5/7/2014 0.48 8/6/2014 0.48 12/3/2014 0.48 3/11/2015 0.49 5/6/2015 0.49 8/5/2015 0.49 12/2/2015 0.49 3/9/2016 0.5 5/11/2016 0.5 8/10/2016 0.5 12/7/2016 0.5 3/8/2017 0.51 5/10/2017 0.51 8/9/2017 0.51 12/6/2017 0.51 12/7/2017 0.51 3/8/2018 0.52 5/10/2018 0.52 8/9/2018 0.52 12/6/2018 0.52 3/14/2019 0.53 5/9/2019 0.53
Over the last 10 years, a firm has had the earnings per share shown in the following table: Years and Earnings per share 2022 4.35 2017 3.092021 4.95 2016 1.552020 3.24 2015 1.782019 2.67 2014 -1.922018 4.35 2013 0.96 . a) If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2018? $1.74 b) If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2018? (enter your response here) c) If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2018? (enter your response here) d) Discuss the pros and…