Question

Rick’s Department Stores has had the following pattern of earnings per share over the last five...

Rick’s Department Stores has had the following pattern of earnings per share over the last five years: Year Earnings per share 20XU $ 11.00 20XV 11.55 20XW 12.13 20XX 12.74 20XY 13.38 The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings. a. Project earnings and dividends for the next year (20XZ). (Do not round intermediate calculations. Round the final answers to 2 decimal places.) 20XZ Earnings $ Dividend $ b. If the required rate of return is 13 percent, what is the anticipated share price at the beginning of 20XZ? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Anticipated stock price $

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rick’s Department Stores has had the following pattern of earnings per share over the last five...
Rick’s Department Stores has had the following pattern of earnings per share over the last five years:   Year Earnings per share 20XU $ 12.00 20XV 12.60 20XW 13.23 20XX 13.89 20XY 14.58 The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings.    a. Project earnings and dividends for the next year (20XZ). (Do not round intermediate calculations. Round the final...
Justin Cement Company has had the following pattern of earnings per share over the last five...
Justin Cement Company has had the following pattern of earnings per share over the last five years:         Year Earnings Per Share 20X1 $ 7.00 20X2 7.42 20X3 7.87 20X4 8.34 20X5 8.84     The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings.          a. Project earnings and dividends for the next year (20X6). (Round the growth rate to the...
Justin Cement Company has had the following pattern of earnings per share over the last five...
Justin Cement Company has had the following pattern of earnings per share over the last five years:         Year Earnings Per Share 20X1 $ 12.00 20X2 12.60 20X3 13.23 20X4 13.89 20X5 14.58     The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings.          a. Project earnings and dividends for the next year (20X6). (Round the growth rate to the...
Justin Cement Company has had the following pattern of earnings per share over the last five...
Justin Cement Company has had the following pattern of earnings per share over the last five years:         Year Earnings Per Share 20X1 $ 9.00 20X2 9.54 20X3 10.11 20X4 10.72 20X5 11.36     The earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. Dividends represent 40 percent of earnings.          a. Project earnings and dividends for the next year (20X6). (Round the growth rate to the...
Justin Cement Company has had the following pattern of earnings per share over the last five...
Justin Cement Company has had the following pattern of earnings per share over the last five years: 20x1.        $10.00 20x2.        $11.60 20x3.        $11.24 20x4.        $11.91 20x5.        $12.58 earning shares have grown at constant rate (round basis) and will continue. Dividends and earnings represent 40%. If the return is 13% what will be the anticipated price for 20x6?
Suppose that a firm’s recent earnings per share and dividend per share are $3.90 and $2.90,...
Suppose that a firm’s recent earnings per share and dividend per share are $3.90 and $2.90, respectively. Both are expected to grow at 7 percent. However, the firm’s current P/E ratio of 20 seems high for this growth rate. The P/E ratio is expected to fall to 16 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places.) Dividends Years First year $ 3.10 Second...
Makers Corp. had additions to retained earnings for the year just ended of $301,000. The firm...
Makers Corp. had additions to retained earnings for the year just ended of $301,000. The firm paid out $179,000 in cash dividends, and it has ending total equity of $4.84 million. The company currently has 150,000 shares of common stock outstanding.    What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)       Earnings $  per share    What are dividends per share? (Do not round intermediate calculations and round...
Problem 3-6 Calculating Market Value Ratios [LO2] Makers Corp. had additions to retained earnings for the...
Problem 3-6 Calculating Market Value Ratios [LO2] Makers Corp. had additions to retained earnings for the year just ended of $174,000. The firm paid out $190,000 in cash dividends, and it has ending total equity of $4.95 million. The company currently has 140,000 shares of common stock outstanding.    What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)       Earnings $  per share    What are dividends per share?...
anitou Corp. had additions to retained earnings for the year just ended of $359,000. The firm...
anitou Corp. had additions to retained earnings for the year just ended of $359,000. The firm paid out $181,000 in cash dividends, and it has ending total equity of $5.36 million. The company currently has 150,000 shares of common stock outstanding. What are the earnings per share? (Round the final answer to 2 decimal places. Omit $ sign in your response.) Earnings           $  per share What are the dividends per share? (Round the final answer to 2 decimal places. Omit...
Rossdale, Inc., had additions to retained earnings for the year just ended of $632,000. The firm...
Rossdale, Inc., had additions to retained earnings for the year just ended of $632,000. The firm paid out $95,000 in cash dividends, and it has ending total equity of $7.27 million. If the company currently has 640,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Earning per share $ ___ Dividends per share $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT