This topic contains a solution. Click here to go to the answer

Author Question: Yesterday, Macallan Corp paid out $1.7308B in dividends and repurchased $4.3983B worth of shares. ... (Read 88 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
Yesterday, Macallan Corp paid out $1.7308B in dividends and repurchased $4.3983B worth of shares. Macallan has 1.12B 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 Macallan 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% in perpetuity. Assume that investors require a 10% rate of return on Macallan's shares. Which of the following is closest to the Total Payout Model estimate of the stock price today?
◦ $58
◦ $60
◦ $62
◦ $64
◦ $66


Related Topics

Need homework help now?

Ask unlimited questions for free

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

af

  • Sr. Member
  • ****
  • Posts: 356
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




mikaylakyoung

  • Member
  • Posts: 531
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

For a complete list of videos, visit our video library