Summit Systems will pay an annual dividend of $1.59 this year. If you expect Summit's dividend to grow by 6.5% per year, what is its price per share if the firm's equity cost of capital is 10.8%? ………. 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 $1.55 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 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% ?
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- 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%?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?Prima 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.
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