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

Author Question: Yesterday, Initech paid out $0.86B in dividends and repurchased $4.475B worth of shares. Initech has ... (Read 119 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

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

britb2u

  • Sr. Member
  • ****
  • Posts: 331
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


Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Apr 25, 2021
Wow, this really help

bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Australopithecus sediba shares small brain size with other members of Australopithecus but also has Australopithecus sediba shares small brain size with other members of Australopithecus but also has
The Five-Highest Paid CEOs The Five-Highest Paid CEOs
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
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, ...
Nitin earns $48,000 per year. Determine his gross earnings for each pay period if he is paid ... Nitin earns $48,000 per year. Determine his gross earnings for each pay period if he is paid ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library