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Author Question: Yesterday, Initech paid out $0.86B in dividends and repurchased $4.475B worth of shares. Initech has ... (Read 50 times)

Lisaclaire

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on: Apr 25, 2021
Yesterday, Initech paid out $0.86B in dividends and repurchased $4.475B worth of shares. Initech has 1.22B shares outstanding and pays all of its dividends and makes its repurchases at the end of each year. Because of the slow-down in the economy, analysts expect that next year Initech will hold dividend payments constant at yesterday's level and cancel its stock repurchase program. Two years from now, analysts forecast that total payouts will return to the level of yesterday. After that date analysts expect that total payouts will grow at an annual rate of 2.5% in perpetuity. Assume that investors require a 9.5% rate of return on Initech shares. What is the Total Payout model estimate of the stock price today?
◦ $57.69
◦ $63.18
◦ $69.60
◦ $70.39
◦ $77.07
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Lisaclaire on Apr 25, 2021

britb2u

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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.
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Lisaclaire

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

nathang24

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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