Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by 5.1% per year, what is its price per share if the firm's equity cost of capital is 10.9%? The price per share is $ (Round to the nearest cent.)
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by 5.3% per year, what is its price per share if the firm's equity cost of capital is 10.7%? The price per share is $______ (Round to the nearest cent.)Summit Systems will pay an annual dividend of $1.56 this year. If you expect Summit's dividend to grow by 5.8% per year, what is its price per share if the firm's equity cost of capital is 10.9%? The price per share is $ (Round to the nearest cent.) M
- Summit Systems will pay a dividend of $1.55 this year. If you expect Summit's dividend to grow by 5.5% per year, what is its price per share if the firm's equity cost of capital is 10.9%? The price per share is $. (Round to the nearest cent.)Summit Systems will pay an annual dividend of $1.48 this year. If you expect Summit's dividend to grow by 5.3% per year, what is its price per share if the firm's equity cost of capital is 11.6%? The price per share is $ (Round to the nearest cent) CZONSummit Systems will pay a dividend of $1.49 one year from now. If you expect Summit's dividend to grow by 6.9% per year, what is its price per share if its equity cost of capital is 11.8% ?
- Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?Prima Corporation's dividend per share next year is expected to be $3.02 and the firm expects dividends to grow at a rate of 5% per year for the foreseeable future. If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share? If you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share? Compare and contrast your findings, and explain the impact of changing risk on share value.BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year. The price of IBM is $67 per share. What is IBM's cost of equity capital?
- Sisters Corp expects to earn $6 per share next year. The firm's ROE is 15% and its plowback ratio is 70%. If the firm's market capitalization rate is 12% a. Calculate the price with the constant dividend growth model. b. Calculate the price with no growthPrima Corporation’s dividend per share next year is expected to be RM3.02and the firm expects dividends to grow at a rate of 5% per year for theforeseeable future.If you can earn 13% on similar-risk investments, what is the most you wouldbe willing to pay per share? If you can earn only 10% on similar-riskinvestments, what is the most you would be willing to pay per share?Compare and contrast your findings, and explain the impact of changing riskon share value.Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.4% per year thereafter until the 5th year. Thereafter, growth will level off at 2.2% per year. According to the dividend discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.9% ?