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Author Question: Yesterday, Hewlett-Packard Co. paid out $0.806B in dividends and repurchased $7.703B worth of ... (Read 97 times)

tfester

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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
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Marked as best answer by tfester on Apr 25, 2021

Mollythedog

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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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tfester

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Reply 2 on: Apr 25, 2021
Excellent

tandmlomax84

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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