This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Yesterday, Hewlett-Packard Co. paid out $0.806B in dividends and repurchased $7.703B worth of ... (Read 112 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
on: Apr 25, 2021
Yesterday, Hewlett-Packard Co. paid out $0.806B in dividends and repurchased $7.703B worth of shares. HP has 2.45B shares outstanding and pays all of its dividends and makes its repurchases on the last day of each year. Because of the slow-down in the economy, analysts expect that next year HP will payout nothing in order to conserve cash. Two years from now, analysts expect only dividends (no repurchases) in an amount equal to the value of dividends paid out yesterday. Three years from now, analysts expect HP to resume repurchases and pay dividends at yesterday's level. Analysts expect total payouts to grow in subsequent years at a perpetual annual rate of 2.5%. Assume that investors require an 11% rate of return on HP's shares. What is the Total Payout model estimate of the stock price today?
◦ $30.53
◦ $32.68
◦ $33.43
◦ $37.11
◦ $44.69
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by tfester on Apr 25, 2021

Mollythedog

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


tfester

  • Member
  • Posts: 534
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Men and women work the same number of hours a week, but men spend more time on paid work, and women ... Men and women work the same number of hours a week, but men spend more time on paid work, and women ...
The Five-Highest Paid CEOs The Five-Highest Paid CEOs
Different sources for 100 calories worth of protein Different sources for 100 calories worth of protein
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Video: Stimulus (introduction)

For a complete list of videos, visit our video library