DoDo, a manufacturer of do-it-yourself hardware and housewares, reported earnings per share of $2.10 in 2018,...

DoDo, a manufacturer of do-it-yourself hardware and housewares, reported earnings per share of $2.10 in 2018, on which it paid dividends per share of $0.69. Earnings are expected to grow 15% a year from 2019 to 2023, during which period the dividend payout ratio is expected to remain unchanged. After 2023, the earnings growth rate is expected to drop to a stable 6%, and the payout ratio is expected to increase to 65% of earnings. The investors’ required rate of return is 10%. What is the value of the stock, using the two-stage dividend discount model?

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jeff jeffy answered 1 year ago

Julie's Market Place has earnings per share of $.35, a book value of $2.10 per share,...

Julie's Market Place has earnings per share of $.35, a book value of $2.10 per share, and a market-to-book ratio of 3. What is the firm's price-earnings ratio?

Medtronic Inc., the world's largest manufacturer of implantable biomedical devices, reported earnings per share in 2017...

Medtronic Inc., the world's largest manufacturer of implantable biomedical devices, reported earnings per share in 2017 of $3.95 and paid dividends per share of $0.68. Its earnings are expected to grow by 16% in 2018 and in 2019; the growth rate is expected to decline each year after that to a stable growth rate of 6% in 2021. The payout ratio is expected to remain unchanged from 2017 to 2019, after which it will increase each year to reach 50%...

Fun Toys Co. reported a per-share book value of $3.5, earnings per share (EPS) of $2.3,...

Fun Toys Co. reported a per-share book value of $3.5, earnings per share (EPS) of $2.3, and dividend per share (DPS) of 0.85 in its balance sheet on December 31, 2010. In early 2011 analysts made the following forecasts for 2011~2015: EPS growth rate is 4.5%, and DPS growth rate is 2%. The required return for equity is 8.5% percent. Case 1: If the residual earnings are zero after 2015, calculate the value per share at the end of 2010....

where do you find price per share, earnings per share, market price per ehare, and book...

where do you find price per share, earnings per share, market price per ehare, and book price per share in a companys financial report such as ford gor 2018 and 2019

Except for the earnings per share statistics, the 2016, 2017, and 2018 income statements for Ace...

Except for the earnings per share statistics, the 2016, 2017, and 2018 income statements for Ace Group Inc. were originally presented as follows:Required: 1. Calculate the 11 missing amounts. (Loss should be indicated by a minus sign.) 2016 2017 2018 Sales $483,855 $704,040 $1,015,900 Costs and expenses 332,070 Profit from continuing operations $317,935 Gain (loss) on discontinued operations 84,660 (111,575) Profit (loss) $157,494 $537,200 Information on Common Shares for Ace Group Inc. * Shares outstanding on December 31, 2015 37,300...

Earnings per Share, Extraordinary Item The net income reported on the income statement of Goth Co....

Earnings per Share, Extraordinary Item The net income reported on the income statement of Goth Co. was $2,340,000. There were 100,000 shares of $23 par common stock and 40,000 shares of $6 preferred stock outstanding throughout the current year. The income statement included two extraordinary items: a $470,000 gain from condemnation of land and a $180,000 loss arising from flood damage, both after applicable income tax. a. Determine the per-share figure for common stock for income before extraordinary items. Round...

RAYA Corporation sells chemicals and systems for cleaning, sanitizing, and maintenance. It reported earnings per share...

RAYA Corporation sells chemicals and systems for cleaning, sanitizing, and maintenance. It reported earnings per share of $2.35 in 1993, and expected earnings growth of 15.5% a year from 1994 to 1998, and 6% a year after that. The capital expenditure per share was $2.25, and depreciation was $1.125 per share in 1993. Both are expected to grow at the same rate as earnings from 1994 to 1998. Working capital is expected to remain at 5% of revenues, and revenues...

Picturetonics just reported earnings per share of $3.00 and paid out dividends of $0.60. Assume that...

Picturetonics just reported earnings per share of $3.00 and paid out dividends of $0.60. Assume that PIcturetronics’ earnings will grow 16% a year for the next 2 years and the dividend payout ratio (dividends as a percent of earnings) will remain at 20%. After 2 years, you expect Picturetronics’ earnings will grow 6% a year forever and its dividend payout ratio will increase to 60% forever. Assume the change in the growth rate and payout policy has no impact on...

Biomet Inc., designs, manufactures and markets reconstructive and trauma devices, and reported earnings per share of...

Biomet Inc., designs, manufactures and markets reconstructive and trauma devices, and reported earnings per share of $0.56 in 1993, on which it paid no dividends. (It had revenues per share in 1993 of $2.91). It had capital expenditures of $0.13 per share in 1993 and depreciation in the same year of $0.08 per share. The working capital was 60% of revenues in 1993 and will remain at that level from 1994 to 1998, while earnings and revenues are expected to...

DataWeb reported the following in the most recent year of operations: Earnings per Share $5.60 Dividends...

DataWeb reported the following in the most recent year of operations: Earnings per Share $5.60 Dividends per Share $1.68 Stock price $84.00 Compute the Price-earnings ratio (P/E), dividend yield (DY) and dividend payout ratio (PAYO). The following data pertain to Marseilles Labs: Sales July $100,000 August $230,000 September $175,000 In the month of sales, one-quarter (25%) are cash and the other 75% are sold on credit, and collected in the following month. Compute Marseilles Labs cash receipts in September.

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